U.S. Postal Service

The United States Postal Service (USPS) has defined e-commerce initiatives to include products and services that: (1) require the use of the Internet; and (2) generate revenues for USPS from user charges or license fees. It has identified seven e-commerce initiatives intended to facilitate the movement of messages, merchandise, and money. For example, USPS has introduced PosteCS, an Internet-based global document delivery system. The Stamps Online initiative allows purchase of stamps and other philatelic products. USPS introduced its eBillPay initiative, an electronic bill presentment and payment service, in April 2000. In the development stage, USPS is working on an electronic mailbox, which could link electronic and physical addresses. GAO found, however, that USPS provided inconsistent information on the status of its initiatives, did not always adhere to its process requirements, and its financial data were inaccurate and incomplete. USPS believes that it has broad statutory authority to offer e-commerce products and service. The Postal Inspection Service, which is responsible for enforcing postal laws, has authority and responsibility to investigate violations of law that involve USPS e-commerce products and services. This testimony summarizes the September report, GAO/GGD-00-188.

GAO noted that: (1) USPS is in the early stages of implementing its e-commerce program; (2) USPS has taken steps this year to develop and implement its e-commerce activities, including developing a definition of its e-commerce initiatives, identifying e-commerce and related initiatives, and establishing a process for approving these initiatives; (3) USPS identified seven e-commerce initiatives involving products and services meant to facilitate the movement of messages, merchandise, and money in ways that require the use of the Internet and generate revenues for USPS; (4) USPS also outlined overall e-commerce goals and strategies and developed some performance targets for its e-commerce initiatives; and (5) however, GAO identified three problem areas relating to USPS management of its e-commerce area: (a) inconsistencies in identifying e-commerce and related initiatives and in reporting the status of these activities, which made it difficult to obtain a complete and accurate picture of USPS' e-commerce activities; (b) inconsistencies in following the required process for reviewing and approving its e-commerce initiatives, which raised questions as to whether the initiatives were appropriately planned and reviewed; and (c) deficiencies in the financial information USPS provided for its e-commerce activities, which raised concerns about the accuracy and completeness of the financial reporting for e-commerce activities.