The U.S. Postal Service’s Use of Contractors to Deliver Mail: Background and Recent Developments


As in nine employees or less. The Postal Inspection Service is The Postal Service has service performance goals for time it should take to deliver a piece of mail after it is collected. These goals are called Service Standards, and they vary by class of mail and by distance between collection and delivery locations.

The Postal Service has completed several initiatives over the past five years to reduce costs and optimize its processing network. One of those initiatives is to Optimize the Network Platform. The initiative is responsible for evaluating, right-sizing, and equipping the mail-processing Background Organizations spend significant resources developing, acquiring, and maintaining applications that manage critical information.

What The OIG Found The Postal Service does not consistently manage software development risk or properly develop and maintain documentation for applications in accordance with current Postal Service policies.

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What The OIG Recommended We recommended management define specific roles and responsibilities for the requirements and testing phases and ensure that all system requirements are documented and tested prior to migration to production. Delivery Hurdles Jul 23, Retail Facility Conditions Revisited Jul 09, Congressional Mandate on Excess Space Dec 17, Risk and Reward Dec 17, Latest Blog Posts Risk and Reward. You can find microbusinesses in agriculture, law, and online Our Semiannual Report to Congress. Congressional Research Service 5.

Fiscal Year City Carriers Rural Carriers CDS Carriers Total Routes , 62, 5, , , 64, 5, , , 67, 5, , , 69, 5, , , 69, 5, , , 69, 5, , , 70, 6, , , 72, 6, , , 74, 6, , , 76, 6, , , 76, 6, , , 76, 10, , , 74, 10, , , 74, 10, , a , 73, 9, , Source: Data provided by the USPS.

FY data are from the end of the second quarter of FY Congressional Research Service 6. Fiscal Year City Carriers Rural Carriers CDS Carriers Total Delivery Points ,, 28,, 1,, ,, ,, 29,, 1,, ,, ,, 30,, 1,, ,, ,, 32,, 2,, ,, ,, 33,, 2,, ,, ,, 34,, 2,, ,, ,, 34,, 2,, ,, ,, 36,, 2,, ,, ,, 37,, 2,, ,, ,, 38,, 2,, ,, ,, 39,, 2,, ,, ,, 39,, 2,, ,, ,, 39,, 2,, ,, ,, 40,, 2,, ,, a 88,, 40,, 2,, ,, Source: Data provided by USPS.

Congressional Research Service 7. These aspects of postal law come into conflict in the matter of the USPS using private persons or firms to deliver mail. The data above indicate that the USPS has increased its use of contractors over the past 15 years. Yet, the data also indicate that contractors serve only a very small percentage of carrier routes and deliver to very few homes and businesses.

Whether the use of private persons and firms to deliver mail will arise as an issue of interest to Congress is unclear. In the event that the use of contractors cannot be settled through the parties themselves, there are at least two broad perspectives that might be taken on the situation.

First, it might be argued that Congress should take no action. Historically, Congress has not enacted specific policies concerning the extent of the USPS s use of contractors to deliver mail. It has left the matter to be decided by the Postal Service and its letter carrier unions through collective bargaining and the grievance process. Congress may continue this practice, reasoning that the USPS has legitimate grounds to pursue cost-savings via the use of contractors.

Indeed, it might be further contended that the use of contractors to deliver mail is in keeping with long-time USPS practices. Contractors have been used to collect, transport, sort, and deliver mail; and machines built by private firms do much of the mail sorting work once performed by USPS employees.

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The U.S. Postal Service's Use of Contractors to. Deliver Mail: Background and Recent. Developments. Kevin R. Kosar. Analyst in American. Currently, the U.S. Postal Service (USPS) is collectively bargaining of Contractors to Deliver Mail: Background and Recent Developments.

Letter carriage would not appear to be an inherently governmental function under current procurement policy, so the USPS should be free to outsource this work as it deems proper. From this perspective, it could be argued that the USPS is supposed to be a self-supporting agency; but that does not necessitate that the USPS should be permitted to outsource however much postal work it chooses. It might be further argued that there is a positive societal benefit in the federal government hiring individuals often minorities and veterans and compensating them well.

Were Congress either to ban or limit the use of contractors, it might wish to consider helping the USPS recoup any lost savings by providing it with additional authorities to increase its revenues or decrease its operating costs. Elaine Halchin, and Erika K. Gibbs Government Relations, U. Prior to passage of. Salaries of Members of Congress: Congressional Votes, Ida A. Postal Service s Financial Condition: Overview and Issues for Congress Kevin R. A Primer Kevin R. Congressional Salaries and Allowances: In Brief Ida A. Kosar, Government and Finance Division;.

Jim Philipps , jphilipps naco. Analyst in American National Government Government. New Employee Leasing Companies. Federal Budget Process and Budget Terms 1 While there is a traditional budget process, less traditional funding mechanisms have been relied upon by legislators in recent years. This document outlines the. Performance of Inherently Governmental and Critical Functions: Manuel Legislative Attorney L. Senate General Assembly File No. Health and Government Operations Education, Health,. The Congressional Budget Process: A Brief Overview James V.

Shutdown of the Federal Government: Causes, Processes, and Effects Clinton T. The Congressional Appropriations Process: Statement of Randy S. On March 31, several organizations called on the Central Intelligence Agency.

Domestic Preference in Vehicle Contracts

Postal Service, September Ibid. Continue Reading Three legal principles that limit the Termination with Notice clause. Federal statute provides the USPS with considerable freedom to enter into contracts with private parties. Identifier Unique identifying numbers for this report in the Digital Library or other systems. Causes, Processes, and Effects Clinton T. Accenture Federal Services , which provides enterprise technology and consulting services to the agency, is ranked No.

Senate For Release on Delivery Expected at 2: Complaint Policy and Procedure Policy Statement This policy is intended to provide fair and prompt consideration to all staff complaints. The University encourages all staff to use the complaint procedure. Statement of Colleen M.

Reorganizing and streamlining central service functions, powers, and duties. Introduction Introduction Financial Management Course 1. In an interim ruling, the Court of Federal Claims ordered the Postal Service to show why these three clauses should not be declared unlawful and unenforceable. Tabetha Jennings, the sole proprietor contractor, had provided service for seven years without any issues. Then, during a heavy volume Christmas season, a postmaster accused her of using a vehicle with insufficient capacity.

The postmaster was wrong, but this charge led to other accusations.

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Jennings disputed the accusations against her and presented statements from a different postmaster and from another contractor that backed her up. But the contracting officer was unmoved and did not lift the suspension of her security clearance. When Jennings failed to provide a substitute carrier to continue the service she had been barred from performing herself, the contracting officer terminated her contract for default. Continue Reading Court orders Postal Service to justify lawfulness of three standard clauses.

The U.S. Postal Service's Use of Contractors to Deliver Mail: Background and Recent Developments

Transportation and technology companies dominate the top 10 spots on the list of the Top U. Postal Service Suppliers for FY Federal Express Corporation again tops the list, a position it has held since Other transportation-related companies in the top 10 include trucking company Salmon Companies, Inc. Not far behind are trucking company Eagle Express Lines, Inc.

Technology-related companies on the list start with EnergyUnited Electric Membership Corporation , which provides telecommunication and energy billing services.

The U.S. Postal Service s Use of Contractors to Deliver Mail: Background and Recent Developments

Letter carriers use the MDD to scan mail and packages. Accenture Federal Services , which provides enterprise technology and consulting services to the agency, is ranked No. David Hendel, a partner at Husch Blackwell, has compiled annual lists of the top Postal Service contractors since , including t hese lists from — An agency must use-it or lose-it under a fixed-priced contract. So long as the contractor is willing to live up to its end of the bargain, the contractor is entitled to payment regardless of whether it provided any service.

During the course of the contract, the Postal Service closed one of its facilities, making it impossible for Olbeter to provide the contracted service. The Postal Service, however, did not issue a termination notice or contract modification. Instead, it allowed the contract to remain in force and continued to make full payment, occasionally ordering other work for which Olbeter was paid separately.

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Nine months after the facility closure, the parties agreed to a convenience termination. Later, the Postal Service decided that the payments it had made during the nine-month closure period were over-payments. The Postal Service recovered those amounts by withholding payments under a different contract. At the PSBCA, the Postal Service contended that Olbeter knew the facility had been closed, that this made performance impossible, and that the Postal Service intended to terminate the contract. The Postal Service thus argued that the facility closure itself served to constructively terminate the contract.

In addition, the parties had agreed to a termination nine months after the facility closed and the Board would not supplant that agreement with a constructive retroactive termination.