Service and Cost Aspects of the Dakota Central Area Mail Processing Center
GGD-95-16: Published: Oct 18, 1994. Publicly Released: Oct 18, 1994.
- Full Report:
Pursuant to a legislative requirement, GAO reviewed mail service provided by the Dakota Central Area Mail Processing Center, focusing on: (1) the Center's ability to maintain overnight mail service in the service area; (2) a comparison of the Center's mail service with that in Aberdeen, South Dakota, which processes its own mail; (3) the Center's projected operating costs; and (4) the number of personnel and workhours allotted to mail processing before and after consolidation.
GAO found that: (1) the Aberdeen postal facility has slightly better overnight delivery service than the Dakota Central Area Mail Processing Center; (2) the Center's overnight mail service has generally met the Postal Service's performance standard for overnight delivery and substantially exceeds the overnight performance of other service areas in the nation; (3) the Center's construction costs have exceeded the consolidation plan's estimates due to the Postal Service's decision to construct a new facility rather than renovate the existing building as originally planned; (4) the Center's first-year operating costs have exceeded estimates partly because of increased transportation costs; (5) mail processing personnel and workhours devoted to mail processing at the Dakota Center have increased by about 44 percent after consolidation; and (6) in response to GAO recommendations, the Postmaster General is developing new guidelines for planning and evaluating area mail processing consolidations, including postimplementation reviews.
Recommendation for Executive Action
Status: Closed - Implemented
Comments: The Postal Service has conducted a postimplementation review of the performance of the Dakota Central Area Mail Processing Center.
Recommendation: The Postmaster General should require that a postimplementation review of Dakota Central be made to ensure that it is achieving planned delivery performance and to more fully understand why it is not achieving planned savings.
Agency Affected: United States Postal Service