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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.

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