Management of Plant Load Activities

GAO formally advised the Postal Service of its findings regarding the management of the plant load program in the Chicago regional area.

The Postal Service has not assured that the plant load procedures are approved in a timely manner and result in cost savings. Under the plant load program, the Postal Service accepts mail at a mailer's plant, bypasses the local post office, and transports it in a postal vehicle to a downstream facility to avoid multiple handling. This procedure may be authorized if there is a cost savings to the Postal Service. Postal Service guidelines provide that applications for the authorization of this procedure should be reviewed within 3 days; however, six of the eight plants visited were not authorized to use plant load procedures until from 6 to 14 months after the Postal Service initiated the applications. The Postal Service had little assurance that the revenue collected was properly computed, because local post offices did not properly staff some plants and some clerks did not adequately monitor mail makeup, observe vehicle loading, properly verify mailing statements, or forward shipping documents.