Postal Service:

Contractor Performance--Express and Priority Mail Transportation

GGD-91-13: Published: Dec 27, 1990. Publicly Released: Jan 28, 1991.

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Pursuant to a congressional request, GAO reviewed the Postal Service's (USPS) award of an express and priority mail transportation contract, focusing on the contractor's performance.

GAO found that: (1) after the initial start-up week, the contractor met the minimum acceptable performance requirement for timely delivery 98 percent of the time for 54 of 57 weeks; (2) the contractor failed to deliver all express and priority mail without leaving any mail behind at the originating city or at the hub for a total of 10 out of 57 weeks; (3) the former contractor's filing of a lawsuit contesting the award prevented GAO from investigating certain concerns about USPS procurement practices; and (4) USPS sought competitive price proposals after the former contractor submitted an unreasonable bid in response to contract renewal negotiations.

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