Postage Stamp Production and Procurement

GAO discussed issues regarding postage stamp production and the relationship between the U.S. Postal Service (USPS) and the Bureau of Engraving and Printing. GAO noted that: (1) the working relationship between the USPS and the Bureau has improved since 1989; (2) technology changes in the information transmission industry such as facsimile machines and electronic information dissemination and funds transfer could reduce demand for water-activated stamps; (3) decreased public demand for water-activated stamps could threaten the Bureau's stamp production monopoly, and encourage private-sector competition; (4) to produce stamps competitively, the Bureau needed a modern production facility; and (5) the Bureau implemented a total quality management initiative that concentrated on customer needs, promised a total organizational involvement in quality improvement efforts, and improved quality and customer service.