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GGD-76-100 1 (1976-12-10)

handle is hein.gao/gaobaabwc0001 and id is 1 raw text is: DOCUMENT RESUME 00439 - [A0590648 1 08- .. . . a Problems of the New National Bulk Mail System. GGD-76-100; B-114874. December 10, 1976. 2'9 pp. + appendix (2 pp.). prrjrt to Bep. Charles H. Wilson, Chairman, House Committee on Post Office and Civil Service: Postal Facilities, sail and Labor Management Subcommittee; by Elmer B. Staats, Comptroller General. Issue Area: Facilities and Material Management: Euilding, Buying, or Leasing Federal Facilities and Equipment (706). Contact: General Government Div. Budget Function: Commerce and Transportation: Postal Service (402). Organization Concerned: Postil Service. congressional Relevance: House Committee on Post Office and Civil Service: Postal Facilities, Mail and Labor Management Subcommittee. The status of the Postal Service's bulk mail system was reviewed through site visits to the four operational bulk mail centers and the center still in the testing stage. The bulk mail system represents the Service's first attempt to mechanize a nationwide mail processing system. The estimated cost to construct and equip the system was $950 million, but the cost rose to $957 million, and completion was delayed one year. Findings/Conciusions: Major reasons for cost inczeases were: buildiug z.4d mechanization design changes made after contracts were awarded, and late delivery of government-furnished eguipment to the ccntiactors. Problems encountered in development of the system included: overestimaticn of the processing capacity of the system; underestimaticn of the volume of mail thai: could not be handled by the system; a high incidence of misdirected mti. and parcel damage; and failure to meet delivery standards. It cannot be concluded at this time if the bulk mail system can provide enough savings to justify investment. in the system. (RRS)

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