Comptroller General David M. Walker has provided Congressional leaders with a list of priorities for the upcoming session of Congress. Among the fifteen ‘Near Term’ recommendations from the GAO chief is “Transform the Postal Service’s Business Model”.

Here’s what Walker had to say:

The U.S. Postal Service is under increasing financial pressure as the Internet, electronic bill payment, and growing competition from private delivery companies change the nation’s communication and delivery sectors and negatively impact mail volumes. These changes raise questions about the role of the federal government in providing postal services and whether the Postal Service can remain a self-financing government provider of affordable universal postal services in the 21st century. The Postal Service’s business model, established when it was reorganized in 1970, relies upon growth in mail volume to cover the costs of its ever-increasing nationwide delivery network to all homes and businesses. This business model is increasingly outmoded as First-Class Mail volume declines and the changing mail mix provides less revenue contribution, which has put the Postal Service’s financial viability at risk. The Service is working to cut costs, improve productivity, reduce its workforce, and make other changes under its existing authority. However, comprehensive postal reform legislation is needed to provide the necessary incentives and flexibilities needed for the Service to transition to a modernized business model so that it can continue providing high-quality, universal postal services.

Key Topics Needing Congressional Oversight

• Ensure that the Postal Service maintains services consistent with its standards as it implements changes to reduce costs related to providing postal services.
• Assess the Postal Service’s changes to its mail processing and transportation networks to ensure that they are reasonable, transparent, and coordinated with affected stakeholders, and that they achieve intended cost savings and efficiencies.
• Adopt flexible, performance-oriented, and market-based compensation systems for postal employees.

Suggested Areas for Oversight for the 110th Congress

This entry was posted on Tuesday, November 21st, 2006 at 6:34 am and is filed under GAO, postal, postal reform. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.