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U.S. Postal Service: USPS Needs to Clearly Communicate How Postal Services May Be Affected by Its Retail Optimization Plans

GAO-04-803 Published: Jul 13, 2004. Publicly Released: Jul 13, 2004.
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Highlights

A key element of the ongoing postal reform deliberations before Congress is the U.S. Postal Service's (USPS) ability to carry out its mission of providing universal mail delivery and retail services at reasonable rates. Many are concerned that USPS's mission is at risk in the current operating environment of increasing competition and decreasing mail volumes. Preserving universal service, particularly in rural areas, is a goal of postal reform. GAO was asked to discuss (1) how USPS provides universal mail delivery services and access to postal services in both rural and urban areas; (2) what changes USPS is making or plans to make related to providing postal services, including changes that may affect rural areas; and (3) what are the major issues that have been raised related to how USPS provides postal services.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
United States Postal Service To facilitate USPS's progress in implementing its planned actions aimed at improving efficiency in its postal network while increasing customer service, the Postmaster General should provide improved transparency and communication to inform Congress and other stakeholders of the actions it plans to take regarding its retail optimization strategy, including (1) the criteria USPS will use to make decisions related to changing its retail network, (2) the process it will use to communicate with postal stakeholders throughout the decision making process, (3) the impact on customers, including those in rural areas, and (4) the time frames for implementing all phases of its retail optimization initiative.
Closed – Implemented
The Service has taken actions to address our recommendation aimed at improving transparency and communication of its retail optimization strategy. The Service is finalizing its Retail Optimization Standard Operation Procedures which identifies instructions, factors, criteria, and analysis to guide retail decisions. These procedures also require each Area to develop a Retail Network Optimization Plan that should describe (1) data used to support decisions related to optimizing the Retail Network, (2) the process it will use to communicate the plan to internal and external customers, and (3) the potential impact to the postal customer, both positive and negative, including those in rural areas. The Postal Service indicated that the evolutionary nature of its retail optimization initiative is not conducive to fixed timeframes, and recently stated in its Network Plan required by the Postal Accountability and Enhancement Act that it is committed to continuously improving the quality and functionally of its retail network.

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Topics

Agency missionsCompetitionCustomer serviceDelivery termsInternal controlsMail delivery problemsPerformance measuresPostal facilitiesPostal ratesPostal serviceUniversal serviceMail processing operationsRural areas