Upcoming Audit Work

This audit is in response to a congressional request to identify causes of mail delays. This audit will examine how Delivering for America network changes such as transportation optimization and processing consolidations affect service performance in South Dakota. South Dakota mail may often travel long distances out of state for processing. Transportation changes, planned conversions to local processing centers, and revised service standards further influence delivery times, which can range from two to seven days. Rural areas may be especially impacted. 

The Postal Service faces persistent difficulties in both meeting its service performance targets and achieving financial sustainability. These challenges stem from a complex mix of internal and external factors. The internal environment is marked by ongoing network restructuring, aging infrastructure and equipment, labor issues, and struggles with organizational culture and management effectiveness. Externally, it must contend with declining mail volume, a surge in e-commerce and package volumes, regulatory constraints, and policy changes.

Our audit will evaluate the operational and financial performance of selected postal districts, specifically examining how operational culture impacts key performance indicators.

Contract Delivery Services (CDS) are a contractual agreement between the Postal Service and an individual or company for the delivery and collection of mail to and from homes and businesses. CDS offers a cost-effective way for the Postal Service to extend its reach while maintaining control over business expenses. In many cases, CDS routes provide an efficient method for delivering mail to communities, especially in rural or underserved areas.

Our audit will evaluate the management, efficiency and safety of CDS operations. Specifically, we will evaluate supplier costs, vehicle requirements, driver safety, and security measures for CDS routes.

As part of its Delivering for America plan to achieve service and financial stability, the Postal Service changed service standards to increase mail transported by surface transportation. Specifically, First-Class Mail (FCM) service standards were extended by an additional one-to-two-days, and Marketing Mail standards were also shortened to two days beyond the applicable FCM standard.

Following these changes, nearly all FCM and Marketing Mail moved via surface transportation. However, in fiscal year 2025, air transportation for these mail classes began to rise. This project will evaluate the effectiveness of market dominant mail (FCM and Marketing Mail) transported by the air network.

In March 2021, the U.S. Postal Service released its 10-year strategic Delivering for America (DFA) plan, to address continuing annual financial losses, unmet service performance goals, and evolving public and consumer demands. Over the past five years, the Postal Service has undertaken major initiatives to build a best-in-class mail and package processing network. These efforts include establishing Regional Processing and Distribution Centers, creating Regional Transfer Hubs, and implementing the Regional Transportation Optimization program. Our objective is to determine the impacts that network change initiatives have had on the Postal Service and its stakeholders.