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Conversion to Automated Mail Processing Should Continue: Nine-Digit Zip Code Should Be Adopted

GGD-83-24 Published: Jan 06, 1983. Publicly Released: Jan 06, 1983.
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Highlights

In response to a congressional request, GAO assessed the automatic mail processing equipment which the U.S. Postal Service (USPS) is buying and the nine-digit ZIP Code system (ZIP Plus-4) which USPS plans to implement. GAO reviewed the accuracy of USPS financial projections, the likelihood that the new equipment will perform as intended, and the potential impact of ZIP Plus-4 mailers.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
United States Postal Service USPS should implement a test program to develop adequate data for improving optical character reader (OCR) readability guidelines.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should develop clear and precise procedures and techniques to apply OCR readability guidelines to determine that mail is eligible for a reduced postage rate.
Closed – Not Implemented
USPS took the position that it would be impractical for postal acceptance units to take the time to closely screen mail to verify elgibility for the ZIP Plus-4 discount.
United States Postal Service USPS should obtain data on mailer reactions to its requests that they voluntarily improve the OCR readability of their mail, and determine whether additional management actions are needed to encourage cooperation.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should conduct an 8-week test on the first unit or units built by each contractor.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should thoroughly evaluate the criteria to be used for retesting the machines which fail the initial acceptance tests.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should, for future OCR and other equipment procurements, conduct a comprehensive first article test of a representative machine, where the production machine is significantly different from: (1) machines currently in use; or (2) machines which were tested in a release-loan program. These first article tests should be conducted under expected environmental conditions and cover all operating parameters, to include processing of nine-digit mail.
Closed – Implemented
USPS agreed with this recommendation. It conducted the recommended first article test on a new production model OCR machine in November and December 1985.
United States Postal Service USPS should, for future OCR and other equipment procurements, perform a thorough engineering analysis of any changes proposed to the design of the machine after the initial first article test and retest a first article if these changes are deemed significant.
Closed – Not Implemented
USPS agreed with this recommendation. However, it is no longer applicable because no changes were proposed after the initial first article test.
United States Postal Service USPS should, if ZIP Plus-4 is implemented, provide local delivery unit employees the necessary indoctrination to understand the Zip Plus-4 program and the training to assist in keeping the National Zip Plus-4 Directory updated.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should, if ZIP Plus-4 is implemented, broaden the eligibility criteria for the manual-list conversion service in order to aid more mailers.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should, if the ZIP Plus-4 program is implemented, provide uniform guidelines for local postmasters to follow in honoring customers' requests for ZIP Plus-4 codes in order to provide consistent treatment of customers' requests.
Closed – Not Implemented
USPS has changed its position. It will now honor all requests from businesses for ZIP-Plus-4 codes regardless of the number of requests. Therefore, the recommended action is no longer necessary.
United States Postal Service USPS should, if ZIP Plus-4 is implemented, modify its information system to track delivery times of five-digit ZIP Code mail when the switch to full manual sorting of such mail occurs, and make the resulting information a matter of postal management review to ensure that delivery times for five-digit ZIP Code mail do not fall below current levels.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
United States Postal Service USPS should, if ZIP Plus-4 is implemented, provide businesses and householders, if they are to be included, with more and clearer information about the ZIP Plus-4 program such as its benefits, prerequisites for participation, expected impact on delivery times, and effects on other programs.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Cost effectiveness analysisFederal procurementPostal serviceProduct evaluationSystems conversionsIT acquisitionsAutomationEconomic analysisAgency evaluationsLabor costs