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GAO-14-828R 1 (2014-09-25)

handle is hein.gao/gaobaaihz0001 and id is 1 raw text is: G A U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 September 26, 2014 The Honorable Thomas R. Carper Chairman Committee on Homeland Security and Governmental Affairs United States Senate The Honorable Heidi Heitkamp United States Senate The Honorable Jon Tester United States Senate U.S. Postal Service: Information on Recent Changes to Delivery Standards, Operations, and Performance Since 2012, the United States Postal Service (USPS) has instituted several initiatives aimed at reducing expenses in its mail delivery and processing networks as part of broader efforts to address its fiscal challenges and move toward financial viability.1 These initiatives included changing the mail delivery standards2 for some types of mail and then consolidating many mail processing operations and facilities.3 For example, before some of the delivery standards changes became effective in July 2012, the delivery standard for a single-piece letter sent by First-Class Mail from Minneapolis to Chicago was 2 days.4 With the delivery standards change, it became 3 days. This report updates information that you requested and that we initially provided to your staff on July 9, 2014. The briefing slides in enclosure I describe (1) changes to 1In July 2009, GAO added USPS's financial condition to the list of high-risk areas needing attention by Congress and the executive branch to achieve broad-based restructuring. Subsequently, GAO retained USPS on the high-risk list in fiscal year 2011 and fiscal year 2013. GAO, High-Risk Series: Restructuring the U.S. Postal Service to Achieve Sustainable Financial Viability, GAO-09-937SP (Washington, D.C.: July 28, 2009); High-Risk Series: An Update, GAO-11-278 (Washington, D.C.: February 2011); High-Risk Series: An Update, GAO-13-283 (Washington, D.C.: February 2013). 2For purposes of this report, delivery standards refer to USPS regulations and rules for determining on time delivery of market-dominant products-which primarily include First-Class Mail (e.g., correspondence, bills, payments, statements, and advertising); Standard Mail (mainly bulk advertising and direct mail solicitations); Periodicals (mainly magazines and local newspapers); and some types of Package Services (primarily Alaska Bypass Mail, Media/Library Mail, and Bound Printed Matter). See 39 CFR Part 121. USPS refers to our description of delivery standards as service standards. 3Consolidation involves combining two or more originating and/or destinating mail processing operations in a single postal processing facility. Originating mail refers to outgoing and local mail that enters the point of origin for mail processing. Local mail remains within the facility and is combined with destinating mail from other origin facilities. Destinating mail refers to mail arriving at the point of entry for distribution and dispatch to a post office for delivery. 4Single-piece letters refer to letters sent individually versus bulk letters which are generally multiple or batches of letters mailed at the same time by commercial mailers. USPS will implement further changes to the delivery standards on January 5, 2015. GAO-14-828R Postal Delivery Page 1

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