Review of Postal Service Mail Trucking Contract Awards

Postal Service contracting activities for highway transportation of mail were reviewed. The review focused on whether: small firms were being denied an opportunity to obtain contracts; wide variances in bids were unusual; firms awarded mail transportation contracts were later given improper price increases; and bonding companies were misusing bid information received from competing transportation firms.

Virtually all main highway contracts are awarded through formal advertising. Officials believe that 99 percent of the highway transportation contractors are small businesses. The wide variations are not unusual; the differences seem to be the result of the economic or competitive position of the bidder. Large computation errors in bids were noted. Price adjustments to contractors were generally due to inflation and were generally in accordance with postal regulations. No indication was found that bid information was misused by bonding companies.