U.S. Postal Service

The U.S. Postal Service may be nearing the end of an era. Although it has notably improved its financial position and performance delivery during the last five years, the Service expects declines in its core business in the years ahead. The growth of the Internet, electronic communications, and electronic commerce has the potential to substantially affect the Service's mail volume. The Service confronts challenges in four areas: maximizing performance in the face of customers' rising demands and choices; managing employees, the Service's most valuable asset, to maximize attainment of agency goals and continuously improve employee performance; maintaining financial viability by controlling costs and enhancing revenues; and adapting to rapidly changing communications and delivery environments involving a growing number of competitors. GAO also stresses the need for the Postal Service to address long-standing issues involving the quality of data used in ratemaking.

GAO noted that: (1) USPS may be nearing the end of an era; (2) during the past 5 years, USPS has made notable improvements in its financial position and delivery performance; (3) USPS has recorded positive net income and has maintained or improved the overall delivery of certain specific classes of mail; (4) however, USPS expects declines in its core business in the coming years; (5) the growth of the Internet, electronic communications, and electronic commerce has the potential to substantially affect USPS' mail volume; (6) as a result, USPS may experience growing difficulty in maintaining its position in a dynamic communications and delivery environment; (7) these developments make it imperative for USPS to resolve four long-standing performance challenges which include: (a) maximizing performance; (b) managing employees; (c) maintaining financial viability; and (d) adapting to competition; (8) GAO is highlighting the need for USPS to take action to address long-standing issues related to the quality of data used in ratemaking and recommending that the Postmaster General report to congressional oversight subcommittees on the actions taken and planned in this area; (9) in recent years, USPS has progressed in addressing various challenges and is continuing to initiate significant changes that respond to the challenges; and (10) however, as long as USPS stands on the brink of the twenty first century, time appears to be growing short for USPS to successfully address its challenges so that it can sustain and improve current performance levels and remain competitive in a rapidly changing communications environment.

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: Team: Phone: