USPS Governors Approve Bank of America NSA, Based on Advances to Intelligent Mail Barcode

The USPS Board of Governors on December 17 issued its decision approving a controversial Negotiated Service Agreement with Bank of America Corporation. The NSA will provide discounts to BAC on First-Class Mail and Standard Mail letters, in return for BAC’s expanded use of Intelligent Mail Barcode technology.

The Postal Regulatory Commission, in its decision reviewing the proposed BAC Negotiated Service Agreement, recommended adoption of the NSA by a 4-1 vote, despite noting that the Postal Service could lose as much as $45 million under the proposed agreement.

The Board of Governors, in its decision to move ahead with the NSA, criticized the PRC’s estimation of reduced revenues, and emphasized the importance of broadened use of the Intelligent Mail Barcode. The Governors noted: “BAC’s adoption of the IMB will not only create momentum for the use of this technology among other members of the mailing industry, but given BAC’s substantial size, its use by BAC will create incentives for the suppliers of the mailing industry to make adjustments to their products to support the new technology. Thus, we believe BAC’s early adoption of this groundbreaking technology will enable the Postal Service to meet its objectives of widespread use of the IMB technology rapidly and consistently with recent pronouncements to achieve implementation by 2009.”