PRC Recommends Approval For NSA Request

Share this content:
The Postal Rate Commission has recommended that the United States Postal Service Board of Governors approve an experimental three-year test of a negotiated service agreement with HSBC North America Holdings Inc.


According to the recommendation issued May 20, the agreement would give HSBC, Prospect Heights, IL, discounted rates for increasing its First-Class mail volumes and accepting electronic address corrections. The USPS would save about $6.1 million over the life of the agreement, according to the PRC.


Under the deal, HSBC would get discounts ranging from 2.5 cents to 5 cents per piece if it increased First-Class mail volumes to 615 million pieces in the first year of the agreement, 725 million in the second year and 810 million in the third year. The increased First-Class volumes would generate $2.4 million for the USPS, but the discounts would cost the USPS $2.8 million in lost revenue, according to the PRC.


Also, the USPS would provide electronic address corrections on First-Class solicitations for no fee. In return, HSBC would agree to forgo the physical return of undeliverable mail, creating savings of $6.5 million for the USPS.


The agreement with HSBC is modeled after an NSA between the USPS and Capitol One Service Inc., McLean, VA, that took effect Sept. 1, 2003. The agreement with HSBC differs with the Capitol One NSA in some aspects, the PRC said.


The HSBC agreement relies on shifting mail volumes from Standard to First-Class rates, rather than the generation of new First-Class volumes, the PRC said.


Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.com. He is covering the postal service while Melissa Campanelli is on maternity leave. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above