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B-114874 1 (1972-06-29)

handle is hein.gao/gaobaagiv0001 and id is 1 raw text is: : .-UNITED STATES GENERAL \.~~:KPWASHINGTON, D.C. aO8 LOGISTICS AND COMMUNICATIONS DIVISION JUN 2 9 1972 B-i 14874 I)IIII! 111l 11111II lJ/IJ 1) 1liii ll!lll2 LM096509 Dear Mr. Postmaster General: We are closing out our study of the transportation activities of the Post Office Department (POD). We completed a survey of Post ) Office trarnsportation activities prior to enactment of the postal reorganizalion bill. This survey showed that POD's transportation system had been responsive to the needs of the postal service. We did, however, find areas where we believe improvements would have Increased the efficiency of the system and would have resulted in substantial savings. Corrective action on many. of the areas would have previously required congressional approval, but can now be taken by the Postal Service under authority granted by the Postal -Reorganization Act. Details of our observations were Included in a draft report furnished to the Postal Service In July 1971. The ServIce agreed with many of our observations and promised to take action to improve or correct the problems identified. A brief summary of the more significant areas where corrective action was promised follows. SAVINGS BY USING STAR ROUTE SERV ICE [4 TE EXTENSIVELY Our analysis of postal transportation activities in sparsely populated areas throughout the United States showed that substantial savings could have been achieved by replacing Government rural delivery service with contract star route service. By comparison, the cost of box delivery star routes during our survey ranged from 40 percent to 60 percent less than the cost of Government rural delivery service. BEST DOCUMENT AVAILABLE

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