U.S. Postal Service:

Financial Outlook and Transformation Challenges

GAO-01-733T: Published: May 15, 2001. Publicly Released: May 15, 2001.

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Bernard L. Ungar
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The U.S. Postal Service (USPS) faces major challenges that collectively call for a structural transformation if it is to remain viable in the 21st century. This testimony discusses USPS' current financial outlook, actions that USPS has taken or planned to take, and the transformation issues that will need to be addressed. GAO concludes that structural transformation is essential if USPS is to overcome its financial, operational, and human capital challenges. It is at a growing risk of being unable to continue providing universal postal service at reasonable rates while remaining self-supporting through postal revenues. Although USPS has announced steps to address its mounting problems, it lacks a comprehensive plan to address its various financial, operational, or human capital challenges. USPS needs to develop a transformation plan in conjunction with Congress and other stakeholders that would address the key transformation issues facing USPS.

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