Nancy R. Kay

Firm Partner and Senior Consultant
Maryland Office

Ms. Kay is regarded as a leading authority on postal costing and the underlying data systems. She specializes in cost modeling, systems analysis, and data reduction. Ms. Kay manages Foster Associates’ Maryland office and the Postal Service team.  She joined Foster Associates in 1993, and is regarded as a leading authority on postal costing and the underlying cost models and data systems. She specializes in cost modeling, systems analysis, and data reduction.

Experience with the U.S. Postal Service

Ms. Kay is responsible for many of the models used in the U.S. Postal Service’s Annual Compliance Report (ACR).  She re-engineered the Postal Service’s models for calculating product costs, forecasting future year costs, and for calculating mail processing costs by product.  Ms. Kay’s work for the Postal Service includes the development of models to measure incremental costs, estimate fully distributed costs, and calculate costs by functional area.  She is considered an expert in Postal costing, particularly in the area of city and rural delivery.

Ms. Kay also developed models to analyze space utilization, to evaluate carrier performance, and to develop product costs for city and rural delivery.  Ms. Kay has participated in numerous studies on postal product costs, particularly in the areas of city and rural delivery.  She has been involved in the analysis of city carrier studies to measure the costs for letter routes, special purpose routes, and in-office activities and develops cost models to implement revised costing methodologies as a result of these studies.  Other projects include the analysis of the universal cost obligation for rural routes, refining the calculation of the mail volume impact on forecasted costs, and analysis of the variance of international mail costs.  Ms. Kay also works closely with Postal Service personnel in the preparation of submissions to the Postal Regulatory Commission (PRC) for changes in costing methodology, in preparation of the Annual Compliance Report, in the analysis and evaluation of alternative costing methodologies, and in evaluating Negotiated Service Agreements and other proposed new competitive product offerings.  She presented testimony before the PRC in the R2000-1, R2001-1 and R2005-1 omnibus rate cases and currently participates in rulemaking and rate cases before the PRC.

Work experience

  • Foster Associates, 1993 to present.
  • Quyen Systems
  • Calculon Corporation

Education

M.S. in Computer Science, The Johns Hopkins University