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B-114874 1 (1973-01-30)

handle is hein.gao/gaobaaehi0001 and id is 1 raw text is: AcftRICTJ D 0.-5C to be reiease by the Office i exceo . e te ew ___> 'a kePt by the oist nressional ospecio;proai - . & § W /< 4./ . I o ..\ tasribu i n te ation 8 -ppr =,' d o l ' - o / WASH'NGTON. D.C. ZD5 OAS RELEASED B-114874 Dear Mr. Chairman: LM09057 Your letter of June 19, 1972, requested that we study the proposed purchase of a new hea du arters- building _fqzr_ the U.S. Postal Se y.vice and the selection of sites. for bulk mail facilities in M.emphis, Tennessee, and Philadelphia, Pennsyl- ..vania. Our report on the Postal Service's decision to pur- chase a new headquarters building was issued to you on Janu- ary 5, 1973, B-114874. This report deals with the selection of the bulk mail facility sites in Memphis and Phi ladephia. T 2-3 4 q We (1) reviewed a Postal Service consultant's study iden- tifying potential bulk mail facility site location areas, (2) evaluated U.S. Army Corps of Engineers' studies relating to possible sites, and (3) discussed the studies and site lo- cations with Postal Service and Corps officials. The Postal Service's site selection for the Memphis fa- cility was reasonable and adequately supported, and the other sites considered did not appear to offer any overall advantage to the one selected. The Postal Service changed its Philadelphia site selec- tion b-cause of concerns raised about the availability of pub- lic transportation, the proximity of adequate public housing, and the impact of the resulting additional road traffic. The new location is accessible by public transportation and is near public housing. BACKGROUND On March 11, 1971, the Postal Service announced that it was planning to establish the National Bulk Mail System (NBm'S) consisting of 21 bulk mail facilities, including the Memphis and Philadelphia facilities, and 12 auxiliary service faciii- ties. According to a Postal Service estimate, the NB4S will cost about ,l billion and, by using modern bulk mail machine- sorting techniques and by consolidating such mail for long- distance transportation, will result in reducing operating costs by about $300 million a year when it is fully implemented in 1975. Under agreements with the Department of the Army, the Postal Service's construction and facilities program is being

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