- Project Title:
- Highway Contract Route Fuel Price Index Program - Capping
- Start Date:
- Wednesday, November 1, 2017
- Estimated Report Release Date:
- April 2018
The U.S. Postal Service uses supplier-operated highway contract routes (HCR) to transport mail and equipment between plants, post offices, or other designated points. In fiscal year (FY) 2016, the Postal Service spent about $524 million on fuel for HCR supplier contracts.
In FY 2017, the OIG issued two reports noting that the Postal Service did not effectively establish the contract baseline fuel price per gallon. As a result, the contract baseline fuel price per gallon was largely unsupported and did not reflect the local market fuel price. In response to OIG’s reports, USPS management implemented in March 2017 new HCR contract guidance on fuel mileage and fuel price determinations.
- What has been the effect of the HCR contract guidance on fuel mileage and fuel price determinations implemented in March 2017?
- What improvements could be made to the March 2017 contract guidance for fuel mileage and fuel price determinations?