Conversion to Automated Mail Processing and Nine-Digit ZIP Code--A Status Report

GAO reported on the current status of Postal Service plans to implement automated mail processing and the nine-digit ZIP code.

GAO found that the Postal Service will be in a position to implement the automated mail processing system as scheduled. Although there are several recommended program improvements and some uncertainties about equipment performance, GAO believes that none of these concerns warrants a delay in implementation. One concern is that the performance of the optical character reading equipment is uncertain. Results of recently completed tests of this equipment were not reviewed by GAO, but the Postal Service claimed that these tests indicated that the equipment will perform up to expectations. Performance of the bar code sorting equipment was also uncertain, but GAO found no catastrophic or uncorrectable problems with the design or performance of the sorters. GAO found that improvements are needed in Postal Service programs to improve the optical character readability of mail and administer the postage rate incentive proposed for large-volume mailings of ZIP-Plus-4 mail. GAO also believes that the Postal Service estimate of potential usage of ZIP-Plus-4 is questionable because of deficiencies in study methodology for a market study commissioned by the Postal Service. GAO further found that the National ZIP-Plus-4 Directory is substantially complete and reasonably correct, although some improvements are attainable.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: James G. Mitchell Team: General Accounting Office: General Government Division Phone: (202) 275-8678