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GGD-85-25 1 (1985-01-31)

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                     UNITEDSTATES GENERAL ACc0UNTI bLG OEiC..
                             WASHINGTON, D.C. 20548

                                                            RELEASED
G0ERAL GOVERNMENT
    DIVISION                                     JANUARY31, 1985


    B-217243



    The Honorable Thomas J. Downey
    House of Representatives

    The Honorable Carroll A. Campbell
    House of. Representatives

         Subject: Availability of Data Supporting the Postal
                   Service's Claimed Savings and Costs of
                   Cluster Box Deliveries (GAO/GGD-85-25)

         In your joint request of August 10, 1984, you asked us to
    determine the existence and availability of data supporting the
    Postal Service's claims regarding the savings, procurement
    costs, and maintenance costs associated with its cluster mailbox
    program. Cluster boxes are pedestal mounted units containing 8,
    12, or 16 individually locked compartments for the delivery of
    mail which are installed at approved locations.

         We conducted our work at Service headquarters during
    September and October 1984. We reviewed Service files, memoran-
    dums, and correspondence. We also interviewed responsible offi-
    cials in the Service's Department of the Controller, Delivery
    Services Department, and Procurement and Supply Department. Our
    work was done in accordance with generally accepted government
    auditing standards.

         According to Postal Service records, the Service conducted
    two studies relating to the subject in 1974. The first study
    identified delivery costs for door and curb line services, and
    the second study identified delivery costs for cluster boxes.
    These studies indicated that cluster box delivery costs were
    lower than either door or curb line delivery costs. Although
    summaries of the two cost studies are available, the Postal
    Service did not retain the data it collected to determine these
    costs. Also, the Service has revised delivery costs identified
    in the summaries based on changes in wage rates and estimated
    increases in other operating costs. Postal Service officials
    told us the Service is conducting a new study of delivery costs.



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