1 NETWORK STATUS MAILERS’ TECHNICAL ADVISORY COMMITTEE (MTAC) – 2/22/06 Paul Vogel Vice President, Network Operations Management U.S Postal Service

2  BOG approved PRC filing – 2/7/06  Notification of national network change to:  NPMHU, Management Associations, NALC, NRLCA, APWU  House & Senate Oversight Committees  GAO  Trade Media & Local Media from 41 AMP sites  Filed case with PRC – 2/14/06 National Notification

3  LPC/DPC Conversion  Follow AMP Guidelines  RDC Conversion  Process that blends the ‘principles’ of AMP with facility planning concepts  Detailed stakeholder communications plan Network Implementation Process

4  Saturday AMPs  Area Mail Processing (AMP)  Partial  Full Network Transition Activities

5 Area Mail Processing (AMP)s Approved in FY 2006 AreaAMP ProposalSTGaining FacilityST NEBridgeport P&DFCTStamford P&DCCT NEWaterbury P&DFCTSo. Connecticut P&DCCT NENW Boston P&DCMABoston P&DCMA PAMarysville P&DFCASacramento P&DCCA EAGreensburg POPAPittsburgh P&DCPA EAKinston P&DFNCFayetteville P&DCNC NYMonmouth P&DCNJKilmer / Trenton P&DCNJ PAPasadena P&DCCASanta Clarita / IndustryCA PAMojave POCABakersfield P&DCCA WEOlympia P&DFWATacoma P&DCWA * Implemented as of 2/16/06 * * * * * *

6 Up to 90 Days Up to 30 Days “One Time Occurrence” 90 Days Up to 180 Days ENTIRE PROCESS IS UP TO 390 DAYS End Employee Re-assignment ENTIRE PROCESS COULD TAKE UP TO 360 DAYS. Move Mail & Begin Employee Re-assignment Feasibility & Announcement Communications Management Associations Unions EAS & Craft Employees National & Local Political Leaders Major Mailers

7 AreaAMP ProposalSTGaining FacilityST CMCumberland MPOMDFrederick P&DCMD EACanton P&DCOHAkron P&DCOH EAZanesville P&DCOHColumbus P&DCOH GLBloomington P&DCINIndianapolis P&DCIN GLCarbondale POILSaint Louis P&DCMO GLCentralia POILSaint Louis P&DCMO GLFox Valley P&DCINSouth Suburban P&DCIL GLGaylord MPOMITraverse City P&DCMI GLOshkosh P&DFWIGreen Bay P&DCWI NEBinghamton P&DFNYSyracuse P&DCNY Area Mail Processing (AMP) Studies In-progress

8 AreaAMP ProposalSTGaining FacilityST NEBurlington P&DFVTWhite River Jct P&DCVT NECape Cod P&DFMABrockton P&DCMA NEPlattsburgh PONYAlbany P&DCNY NEPortsmouth P&DFNHManchester P&DCNH NESpringfield P&DCMAHartford P&DCCT NEUtica P&DFNYSyracuse P&DCNY NEWatertown PONYSyracuse P&DCNY Bronx P&DF (Dest)NYMorgan P&DCNY Newark P&DCNJDVD P&DCNJ SESaint Petersburg P&DCFLTampa P&DCFL Area Mail Processing (AMP) Studies In-progress

9 AreaAMP ProposalSTGaining FacilityST SEJackson CSMPCTNMemphis P&DCTN SEDaytona Beach P&DFFLMid-Florida P&DCFL SWBatesville POARLittle Rock P&DCAR SWBeaumont P&DFTXHouston P&DCTX SWDallas P&DCTXNorth Texas P&DCTX SWBryan POTXHouston P&DCTX SWMcAllen POTXCorpus Christi P&DFTX SWWaco P&DFTXFort Worth / AustinTX WEAberdeen CSMPCSDDakotas Central P&DCSD WECarroll CSMPCIADes Moines P&DCIA Area Mail Processing (AMP) Studies In-progress

10 AreaAMP ProposalSTGaining FacilityST WEGlenwood Springs CSMPCCOGrand Junction CSMPCCO WEHelena CSMPCMTGreat Falls CSMPCMT WEHutchinson CSMPCKSWichita P&DCKS WEKansas City P&DCKSKansas City P&DCMO WELA Crosse CSMPCWIRochester P&DFMN WEMcCook CSMPCNENorth Platte CSMPCNE WESheridan CSMPCWYCasper P&DCWY WESioux City P&DFIASioux Falls P&DCSD WETwin Falls CSMPCIDBoise P&DCID WEWheatland CSMPCWYCheyenne P&DCWY WEYakima POWAPasco P&DFWA Area Mail Processing (AMP) Studies In-progress

11  Saturday AMPs  Area Mail Processing (AMP)  Partial  Full  Regional Distribution Center (RDC) Activations  Transitional Surface Transfer Center (STC) Activations  Bulk Mail Center (BMC) Transitions  Temporary Logistics & Distribution Center (L&DC) Activations  APPS Implementation Network Transition Activities

12 HASP-NORTH NJ (NJ) HASP-HARRISBURG (PA) HUB-TWIN CITIES (MN) HASP-CAPITAL METRO (MD) HASP-NORTHERN (MA) HUB-VAN NUYS (CA) HUB-BUSSE (IL) HASP-INDIANAPOLIS (IN) HASP-BRONX (NY) HUB-SACRAMENTO (CA) HASP-ATLANTA (GA) HASP-SOUTHEASTERN (TN) HASP-SOUTHWEST (TX) HASP-BINGHAMTON (NY) ORLANDO (FL) L&DC PITTSBURGH (PA) L&DC Existing HASPs Existing Hub-&-Spoke (HASPs) Network

13 Existing STCs New STCs STC-SOUTHERN CALIFORNIA (CA) STC-NORTHERN CALIFORNIA (CA) STC-SOUTHWEST (TX) STC-BUSSE (IL) STC-INDIANAPOLIS (IN) STC-NORTHERN (MA) STC-NORTH NJ (NJ) STC-PITTSBURGH (PA) STC- ATLANTA (GA) STC-ORLANDO (FL) STC-HARRISBURG (PA) STC-BRONX (NY) STC-CAPITAL METRO (MD) STC-BINGHAMTON (NY) STC-CHARLOTTE (NC) August 5, 2006 STC-SALT LAKE CITY (UT) April 22, 2006 STC-DENVER (CO) April 22, 2006 STC-PHOENIX (AZ) April 22, 2006 STC-MEMPHIS (TN) October 30, 2006 STC-KANSAS CITY October 30, 2006 STC-TWIN CITIES (MN) 2006 Surface Transfer Center (STC) Activations

14  30 year old infrastructure & technology  Updating Parcel Sorting Machines with: –Composite Track –OCR capability –Intelligent crossovers  Deploying state of the art package sortation equipment –APPS  Leveraging technology –Surface Visibility –FAST BMC Modernization

15 Kansas City BMC Modernization