U.S. Postal Service's Administration of Highway Contract Routes

A review was made of complaints that the U.S. Postal Service (USPS) may be putting improper pressure on mail contractors and forcing them to carry mail at a loss. Some of the mail contractors were contacted to determine the nature of their complaints. Contractor complaints fell into three categories: (1) financial administration of the contract, including the initial solicitation of bids and the contract cost adjustment system; (2) contract performance monitoring by USPS; and (3) problems with the Departments of Transportation (DOT) and Labor.