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GGD-78-59 1 (1978-05-16)

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                         DOCIJMENT 3ESUME
   05(7- (B1386421 I       1/,=i s

Grim Outlook for the gnitea States Postal Service's National
bulk Mail System. GGD-78-59; B-114874. May 16, 1978. 33 pp. + 7
appendices t13 pp.).

Report to Rep. Charles H. Wilson, Chairman, House Ccmuittee on
Post Office and Civil Service: Postal Personnel and
Modernization Subcommittee; by Elmer B. Staats, Comptroller
General.

Contact: General Government Div.
Budget Function: General Government! Other General Government
    (806).
Organiation Copcerned: Postal Service.
Congressional .levance: House Committee on Post Office ani
    Civil Service: Postal Personnel and Modernization
    Subcommittee. Rep. Charles 0. Wilson.

         The Post&1 Service's national bulk mail system became
fully operational during 1976. The system ccnists of 21 bulk
mail centers located throughout the country. Each center is a
distribution point where mail originating or coming into an area
is sorted and then transported to either another center, a
sectional facility, or a large post office.
Findings/Conclusions: The Service's parcel post rates have not
been competitive, and delivery performance continues to be
untimely and inconsistent. As a result, major mailers generally
prefer the Service's principal competitor fcr supplying delivery
services. These factors have contributed to a general decline in
parcel post volume. Prcblens during the startup period,
primarily parcel damages and sorting errors, threatened the
survival of the system. Parcel damage is no longer a serious
problem, but consistent damage statistics are needed. The
nonmachinable mail rolume is large, and nonmachinable parcels
are often delayed. Reprocessed mail has been reduced, but it is
still a problem. Transportation limitations continue, especially
reliance on railroads which increases shipping times. The bulk
mail system is approaching the point where it may be more
economical tu adopt alternative means to move bulk mail. These
alternatives need to be evaluated. (RRS)

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