OIG: USPS wasted $35 million sending first class mail via FedEx
TweetThe US Postal Service Inspector General has found that the USPS is paying FedEx to transport and sort First Class Mail that could have been handled more cheaply by surface transport, the airlines, and postal employees. The audit covered transportation costs in the Capital Metro, Eastern, Great Lakes, and Northeast Areas.
The OIG’s report found:
It was more effective and economical in some cases for the Capital Metro, Eastern, Great Lakes, and Northeast Areas to use ground transportation and domestic air carriers as well as to sort mail at Postal Service plants than to use FedEx to perform these functions. Because the areas used FedEx, the Postal Service incurred about $35.3 million in unnecessary costs. If these areas implement our recommended changes, we estimate the Postal Service could save $170.6 million over a 10-year period.
Previous OIG audits identified $390 million in potential unnecessary charges due to the use of FedEx in other areas.
Federal Express – Transportation Agreement – Northeast Areas
May 27th, 2010 15:51
So, lets cut a day of service, close offices, under staff, and oh! cut pay for those actually delivering and sorting the mail. And instead waste money and claim it’s the employees faults. Just like them having you turn around and go back out to deliver 1 first flass piece of 44 cent mail. Instead of having flat machines for a product that’s getting dwindled due to price hikes how about invest in software that is compatible to UPS or Fed EX? Then the customer would know where their package is at any moment. Is anyone going to see the truth behind all this smoke? I pray somebody does.
May 27th, 2010 20:44
mail girl is right the waste is what is destoying the usps.i see the waste in transportation everyday.trucks going out with little on board. that is where the usps is wasting billions on transportation. the usps needs fresh ideas from some newly gdaduated college students.
May 27th, 2010 21:10
what is going to be done about it? any repercussions?
May 28th, 2010 00:28
I do pray everyday for a miracle from above that would save the PO from going under. As we all know, the hard working people are always getting the blame for the dire financial of the PO. Infact, the Upper Management that actually brings down the PO with their wasting money practices such as deep discount to big mailers, gps, and also video cameras. I totally agree with mail girl that we need to upgrade our tracking system because the one that we are using right now is a joke. If we do business right and take good care of our customers, UPS and FEDEX will not stand a chance to compete aginst us. Together we pray God will not let us down and something will happen eventually.
May 28th, 2010 06:08
Now were really saving the money by taking all the mail on Saturday, sorting the businesses that are closed in our trucks, and bringing it back to take out on Monday as a 3rd bundle. Unbelievable waste and stupidity. We also let customers park in front of their boxes every day, turning drives into a series of hop-outs, and no extra time given for it.
May 28th, 2010 10:36
Sorry Curly, we do not need “fresh ideas from newly graduated college students”, instead we need management that will listen to the workers that are actually doing the job about where we can save money.
May 28th, 2010 17:34
Budgets need to get back to the basics- Bottom -up, then make them work (budgets) by cutting top down. If our present volume/revenue figures represent a true picture and we have cut the working force by so many hours/employees to adjust for that loss; then why do we continue to need so many VP’s? For the loss of every 20,000 working employees, this should equate out to 1 less VP and staff. “Do More with Less” I think is the catch phrase. MP needs to be back under Customer Service. You will only truely be able to give outstanding “Customer Service, when there is only one entity controlling the product from beginning to end. When you have a “MP budget” non-revenue generation, competing with a “Customer Service Budget”(revenue orientated) you/we have a problem and automatic built in waste. Also, anytime that it is proven that numbers are falsified to justify contracting out, the indivduals involved should be treated just as anyone caught inflating/deflating numbers on the work room floor; terminated and possibly prosecuted for falsifying a government documents. The USPS can be viable, however; we need to do away with the “Wall Street” attitude at the top (anything justifies the means) We need to fill top management slots, not from outside the organization using family/friends/spheres of influence, but with dedicated employees from within. Not yes individuals, but individuals with integrity and the ability to make an objection when something isn’t right and logically justify their argument. Of if a mistake is made, admit it, and correct it then and now. Do not waste millions trying to justify something that will not work.
May 29th, 2010 09:03
Just great. Management using our competitor. JUST great! You big dopes! List names! WHO IS DOING THIS!
Top heavy management of the USPS can’t find where the excess is. (no mirrors at USPS corporate offices) Too many people who don’t touch the mail doing nothing but adding to costs and expenses.
Coming up with cuts in service to save costs. Removing mailboxes? really? In a period of identity theft? Not smart at all.
Do two 99′s a year? adjust routes two times a year? Where is the cost of all the supervisiors time and expenses recovered from?
If carriers leave the office after 1-2 hours hitting the street for 6-7 hours, why do you need full time carrier supervisiors? part time, yes.
Did USPS really put up a plant manager type up at the Conrad in Indpls for 6 months? The Conrad is the top, you go down in cost from there.
May 30th, 2010 09:31
Perhaps the OIG should continue this investigation to determine which USPS VPs got kickbacks from FedEx to continue this no-bid contract type of scam which has become all too familiar in government agencies/politics.
June 10th, 2010 16:18
I wonder if this explains undeliverd first class letters? I had a person mail me a very important document in mid May from Chicago to Baltimore, no sign of it. Another copy was mailed on Monday the 7th, this hasn’t arrived yet either (it’s end of Thursday 10th now).
If this doesn’t arrive by next week, is it likely to be USPS or should I begin to suspect the sender?
It’s incredibly frustrating.