U.S. GOVERNMENT PUBLISHING OFFICE

32–453 PDF WASHINGTON : 2019

S. Hrg. 115–450 

NOMINATIONS OF HON. DAVID C. WILLIAMS, 

HON. ROBERT M. DUNCAN, AND 

CALVIN R. TUCKER TO BE GOVERNORS, 

U.S. POSTAL SERVICE 

HEARING 

BEFORE THE

COMMITTEE ON 

HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED FIFTEENTH CONGRESS 

SECOND SESSION 

NOMINATIONS OF THE HONORABLE DAVID C. WILLIAMS, 

THE HONORABLE ROBERT M. DUNCAN, AND CALVIN R. TUCKER TO BE 

GOVERNORS, U.S. POSTAL SERVICE 

APRIL 18, 2018 

Available via the World Wide Web: http://www.Govinfo.gov/ 

Printed for the use of the 

Committee on Homeland Security and Governmental Affairs 

( 
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

JOHN HOEVEN, North Dakota 

STEVE DAINES, Montana 

CLAIRE MCCASKILL, Missouri 

THOMAS R. CARPER, Delaware 

HEIDI HEITKAMP, North Dakota 

GARY C. PETERS, Michigan 

MAGGIE HASSAN, New Hampshire 

KAMALA D. HARRIS, California 

DOUG JONES, Alabama 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

JENNIFER L. SELDE, Professional Staff Member 

MARGARET E. DAUM, Minority Staff Director 

DONALD K. SHERMAN, Minority Senior Advisor 

LAURA W. KILBRIDE, Chief Clerk 

BONNI E. DINERSTEIN, Hearing Clerk 
(III) 

C O N T E N T S 

Opening statements: Page 

Senator Johnson ............................................................................................... 1 

Senator McCaskill ............................................................................................ 2 

Senator Portman .............................................................................................. 16 

Senator Heitkamp ............................................................................................ 19 

Senator Peters .................................................................................................. 22 

Senator Carper ................................................................................................. 25 

Prepared statements: 

Senator Johnson ............................................................................................... 31 

Senator McCaskill ............................................................................................ 32 

WITNESSES 

WEDNESDAY, APRIL 18, 2018 

Hon. Mitch McConnell, a U.S. Senator from the State of Kentucky 4 

Hon. Rand Paul, a U.S. Senator from the State of Kentucky 5 

Hon. David C. William to be Governor, U.S. Postal Service 

Testimony .......................................................................................................... 6 

Prepared statement .......................................................................................... 37 

Biographical and financial information .......................................................... 40 

Letter from the Office of Government Ethics ................................................. 60 

Responses to pre-hearing questions ................................................................ 64 

Responses to post-hearing questions .............................................................. 97 

Hon. Robert M. Duncan to be Governor, U.S. Postal Service 

Testimony .......................................................................................................... 8 

Prepared statement .......................................................................................... 111 

Biographical and financial information .......................................................... 113 

Letter from the Office of Government Ethics ................................................. 133 

Responses to pre-hearing questions ................................................................ 137 

Responses to post-hearing questions .............................................................. 162 

Calvin R. Tucker to be Governor, U.S. Postal Service 

Testimony .......................................................................................................... 10 

Prepared statement .......................................................................................... 171 

Biographical and financial information .......................................................... 175 

Letter from the Office of Government Ethics ................................................. 191 

Responses to pre-hearing questions ................................................................ 195 

Responses to post-hearing questions .............................................................. 217 

APPENDIX 

Income statement submitted by Senator Johnson ................................................ 228 

(1) 

NOMINATIONS OF THE HONORABLE 

DAVID C. WILLIAMS, THE HONORABLE 

ROBERT M. DUNCAN, AND CALVIN R. TUCKER 

TO BE GOVERNORS, U.S. POSTAL SERVICE 

WEDNESDAY, APRIL 18, 2018 

U.S. SENATE,

COMMITTEE ON HOMELAND SECURITY

AND GOVERNMENTAL AFFAIRS, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:04 a.m., in room 

342, Dirksen Senate Office Building, Hon. Ron Johnson, Chairman 

of the Committee, presiding. 

Present: Senators Johnson, Portman, Paul, Lankford, McCaskill, 

Carper, Heitkamp, Peters, Hassan, Harris, and Jones. 

OPENING STATEMENT OF CHAIRMAN JOHNSON 

Chairman JOHNSON. Good morning. This hearing is called to 

order. We are meeting to have a hearing on the nominations of 

three individuals to serve on the Postal Board of Governors (BOG), 

a position that I think is sorely needed. 

The history is interesting, in terms of how we came to this, what 

I consider a pretty sorry state of affairs where we have no Board 

members on the Board of Governors. The Board of Governors, their 

task is to, first of all, they are responsible for the hiring and firing 

of the Postmaster General and the Deputy Postmaster General. 

The Board of Governors approves the U.S. Postal Service’s (USPS) 

business plan and strategy, including major changes to the USPS 

network, collective bargaining agreements, and rate increases. 

Now I think anybody who has taken a look at the numbers, and 

I will be the first to admit that the numbers are kind of hard to 

analyze. We are actually passing out an income statement that was 

kind of a late-night project of mine last night, trying to make a little bit more sense, to take a look at it from an accountant’s standpoint versus kind of government accounting, just kind of laying out 

exactly what has happened with the Postal Service. 

It is pretty easy to diagnose. I mean, you have a fall-off in volume from 2001, where Postal Service delivered, about 103.7 billion 

pieces of mail to now, last year it was 58.7. It is only 56.6 percent 

of that total volume. 

Now they tried to make it up with parcel post. I think part of 

the problem—and I do not have as accurate information as I would 

like before I release some information, but you take a look at the 

price increases over the last 11 years, since the last time Congress 
2 

1The income statement referenced by Senator Johnson appears in the Appendix on page 228. 

passed postal reform, which, by the way, did not fix the problem 

long term, the price increases of United Parcel Service (UPS) and 

Federal Express (FedEx) far exceed what the postal system has 

been able to run through. And I have had enough meetings with 

people who use the Postal Service that like it that way, but it certainly has not produced a long-term, viable Postal Service. 

In 2006s postal reform, they came up with this concept of prefunding, which, listen, as a fiscal conservative I appreciate the fact 

that they actually wanted to fully fund your pension plans. The 

problem is the Postal Service has not had the funds. So over the 

last 11 years, in total, the Postal Service was supposed to pre-fund 

about $62.5 billion. In fact, they have actually made payments 

equal to about $20.8 billion, which means they have defaulted on 

that 2006 postal reform to the tune of about $41.7 billion. 

And if you look at their income statement that I did pass out,1

you can see that the total United States Postal Service report income was a loss of $63.9 billion, and 62.5 percent, virtually all of 

it, has to do with that pre-funding. 

So, again, if you take a look at it in terms of what I passed out 

here, I think this kind of lays out exactly what has happened over 

the last 11 years. We obviously need to take a look at the balance 

sheet. We need to understand what it is going to take to make the 

postal system a long-term, economically viable organization, which 

it is not today. 

Now we do not have any Governors. The purpose of this hearing 

is to have one. Right now the Postal Service is basically having to 

deal with the 535-member Board of Directors and we are not very 

effective at doing the job. 

So again, I appreciate the nominees’ willingness to serve. I want 

to welcome you. I want to welcome your families. I am looking forward to your testimony. And with that I will turn it over to Senator McCaskill. 

OPENING STATEMENT OF SENATOR MCCASKILL 

Senator MCCASKILL. Thank you, Mr. Chairman. I appreciate you 

holding this hearing and I certainly underscore and emphasize the 

comments that you made about how important it is that we confirm some members to the Board of Governors. 

The Postal Service is the only delivery service reaching every address in America, and is growing by 1.1 million addressees per 

year. The Postal Service employs more than 500,000 people, including over 100,000 veterans, to deliver 150 billion pieces of mail and 

packages each year. It has operations in all 50 States, the District 

of Columbia, and all U.S. territories. 

Even as technological advances make the world feel smaller, mail 

delivery remains a critical part of the infrastructure that connects 

people and businesses across the country and world. 

The Board of Governors is comparable to a Board of Directors of 

a publicly held corporation and consists of nine Governors, appointed by the President and confirmed by the Senate. Can you 

imagine a publicly held corporation that would neglect to have a 
3 

Board of Directors for 4 years, in terms of there even being a 

quorum? 

We have no Senate confirmed members of this Board, and I am 

not just pointing the blame at this Administration. I am pointing 

the blame at the past Administration also, that this was not made 

a priority in terms of filling this very important Board, especially 

at this critical juncture, in terms of the Postal Service and the financial constraints it is operating under. It is currently operating 

under the Temporary Emergency Committee, which includes the 

Postmaster General and the Deputy Postmaster General. This is 

untenable. We are in dire need of qualified Governors to help make 

critical decisions especially to address the financial challenges facing the agency. 

As the Chairman has indicated, the Postal Service has experi- enced 11 consecutive years of net losses, totaling $65 billion. In 

2012, it reached a statutory borrowing limit of $15 billion, so it 

cannot borrow more money from the Treasury, and current law 

prevents the Postal Service from accessing private financial markets. 

These financial problems result from a combination of factors, including the decline of First-Class Mail and requirement to pre-fund 

100 percent of its liability. Due to its universal service obligation 

(USO), the Postal Service is required to deliver to more addresses 

every year. Closing post offices and processing facilities can save 

the Postal Service money, but can adversely impact these communities, especially the rural communities, where the local post office 

is more than brick and mortar. It is very important to the survival 

of these communities that they continue to have first class postal 

service. 

The bipartisan Postal Reform Act of 2018, which Senator Carper 

introduced with Senator Heitkamp, Senator Moran, and myself, 

seeks to balance the Postal Service’s competing interests while providing the Postal Service with short-term flexibility to make some 

necessary capital investments. 

I hope that we can move forward with nominees for the Board. 

We have a long history of pairing nominees from both parties. I am 

concerned that we are not doing so today. I hope the President will 

quickly nominate a fourth person to the Board so that we will have 

a quorum to take action, and short of that, Mr. Chairman, I hope 

you will work with me to quickly confirm a fifth member to the 

Postal Regulatory Commission (PRC). I understand there is a 

nominee under consideration for that position already. We should 

continue the long bipartisan tradition established by this Committee and ensure that balance is on the Board of Governors at 

this critical time. 

While I remain committed to working with the Board of Governors and Postal Service management to address management 

and financial hurdles, that will not work if the Postal Service refuses to cooperate with congressional requests. For example, I continue to be concerned that the Postal Service is not maximizing its 

best but most expensive asset, the last-mile delivery, in its negotiated service agreements with FedEx and UPS. Without the Postal 

Service, FedEx and UPS would be forced to find more expensive alternatives to deliver packages to the last mile. 
4 

1The prepared statement of Senator McCaskill appears in the Appendix on page 32. 

I have railed in this Committee for years, we should not be giving a deal to our competitors for the last mile of delivery. They 

should be paying a premium, not be getting a discount. In no other 

realm would we be giving a deal to our competitor. And package 

delivery is the future of the Postal Service. But despite my repeated requests for data and information about these contracts, I 

have been stymied time and time again. My request for Postal 

Service negotiated service agreements with UPS and FedEx has 

gone unfulfilled for years. 

I will not be able to support anyone’s nomination unless they can 

commit that this important oversight committee gets a look, and 

we can negotiate as to how much of that would become public. But 

it is ridiculous that we have reached such a roadblock in getting 

this incredibly important information as we try to put the postal 

service on a more sound fiscal footing. 

I see that our leader is here. I apologize for going on once he entered the room, thank you, Mr. Chairman. I will put my entire 

statement in the record1 and I look forward to the testimony of the 

witnesses. 

Chairman JOHNSON. Thank you, Senator McCaskill, and in addition to welcoming our nominees we do have the distinct honor of 

welcoming the Majority Leader of the Senate, Senator McConnell, 

who would like to introduce Mr. Duncan. 

So, Majority Leader. 

STATEMENT OF THE HONORABLE MITCH MCCONNELL, A 

UNITED STATES SENATOR FROM THE STATE OF KENTUCKY 

Senator MCCONNELL. Thank you, Mr. Chairman, Senator 

McCaskill. I appreciate the opportunity to be here this morning to 

present my friend and fellow Kentuckian, Mike Duncan, to serve 

on the Board of Governors of the United States Postal Service. 

I have known Mike for a very long time. I am glad that President 

Trump has nominated such an intelligent, able, and experienced individual to once again serve our country. As a businessman, a public servant, and a dedicated mentor to young people, Mike is an 

outstanding choice to help oversee the world’s largest postal organization. He has a wealth of business experience. He brings important skills to the Board to help manage the Postal Service with efficiency and effectiveness. 

After graduating from Cumberland College, which is in my State, 

and the University of Kentucky College of Law, Mike and his wife, 

Joanne, moved to Inez to lead the Inez Deposit Bank. This is a 

small community up near the West Virginia line. In a small coal 

community like Inez, community banks are a critical resource, and 

Mike’s local focus has helped the area for a very long time. 

With proven leadership and dedication, Mike has gained a keen 

understanding of the needs of rural Americans. In addition to his 

financial work in Eastern Kentucky, Mike has served as President 

of the Kentucky Bankers Association and a Director of the Cincinnati branch of the Cleveland Federal Reserve Bank. As a result, 

he is adept in corporate governance and business management. He 

has shown responsibility, creativity, and integrity, and these quali-
5 

ties will continue to serve him and all who rely on the Postal Service well on the Board of Governors. 

When Mike and Joanne moved to Inez they committed to spending at least one day a week doing something to benefit their community. Borne from that commitment is Mike’s lifetime civic service on a local, State, national, and even international scale. From 

directing the Christian Appalachian Project to representing our 

Nation by teaching the principles of democracy to former Communist leaders, Mike has clearly gone above and beyond his initial 

commitment of one day a week. In fact, in 2006, he took on the herculean task of serving on the Board of the Tennessee Valley Authority (TVA) at a time when the TVA was billions of dollars in 

debt and failing to adequately serve Kentuckians. The Senate confirmed Mike on a voice vote, and his public service helped to improve the TVA. 

Most recently, President Trump asked Mike to chair his commission on White House Fellowships. This position proves both the 

trust which the President has in him and exhibits Mike’s lifetime 

commitment to mentorship, which all began back in Inez many 

years ago. 

As a dedicated mentor to dozens of young people in Appalachia, 

Mike helps them understand that they have the ability to flourish 

in their communities. He emphasizes the importance of hard work 

and community service and his program pushes these young people 

to reach their potential. Encouraged by Mike, they are succeeding 

in their own lives and bringing long-term benefits to their communities. 

So, Mr. Chairman, I am confident that Mike will bring all of 

these qualities—fierce intelligence, business acumen, and a commitment to public service to the U.S. Postal Service. During the 

course of this hearing, this Committee will come to understand how 

much the USPS and our Nation will benefit from his leadership 

and public service. 

So I appreciate very much the opportunity to come by and take 

a few minutes and talk about my good friend, Mike Duncan. Thank 

you, Mr. Chairman. 

Chairman JOHNSON. Thank you, Leader McConnell. I believe 

Senator Paul would also like to make a few words. 

STATEMENT OF THE HONORABLE RAND PAUL, A UNITED 

STATES SENATOR FROM THE STATE OF KENTUCKY 

Senator PAUL. Thanks, Chairman Johnson, and thanks, Senator 

McConnell, for taking the time to appear on behalf of our mutual 

friend, Mike Duncan. 

I believe Mike is a great pick to serve on the Postal Service 

Board of Governors. Mike and I have known each other not for as 

long as Senator McConnell and Mike have known each other but 

for several years, and I think he will be a great pick. He has 

worked with several hospitals, several colleges, and other nonprofits, Senator McConnell mentioned, in his resume. But in all the 

dealings I can tell you, with Mike, that I have found him to be honest, forthright, and fair, which I think are very important qualities 

for someone serving in government. 
6 

1The prepared statement of Chairman Johnson appears in the Appendix on page 31. 

2The prepared statement of Mr. Williams appears in the Appendix on page 37. 

Mike has provided successful and steady leadership for an impressive array of organizations, from large national nonprofits to 

regional quasi-government enterprises to small community enterprises, and throughout his distinguished career across a number of 

sectors he has always proven that he understands how to cultivate 

and manage personal relationships in order to effectively balance 

the needs of stockholders, industry, customers, rate payers, and, 

really, in the service of the public interest. 

The true hallmark of Mike’s career, though, as Senator McConnell mentioned, has been his willingness to give generously of his 

time, including to students in and around his native Martin County 

and Eastern Kentucky. Though he has been to the big city, I do not 

think he has forgotten he is from the small city, and those Eastern 

Kentucky roots of loyalty to his home and loyalty to his State I 

think have guided him well in his career. 

In summary, I think Mike Duncan is a fine man and a dedicated 

public servant. I believe the U.S. Postal Service Board will benefit 

tremendously from his broad experience and skilled leadership, as 

well as, most especially, his good old fashioned Kentucky common 

sense, and I highly recommend him and hope the Committee will 

vote him through. Thank you. 

Chairman JOHNSON. Thank you, Senator Paul. I would ask consent that my written statement be entered into the record.1

It is the tradition of this Committee to swear in witnesses, so if 

you will all stand and raise your right hand. 

Do you swear the testimony you will give before this Committee 

will be the truth, the whole truth, and nothing but the truth, so 

help you, God? 

Mr. WILLIAMS. I do. 

Mr. DUNCAN. I do. 

Mr. TUCKER. I do. 

Chairman JOHNSON. Please be seated. 

Our first nominee is the Honorable David Williams. Mr. Williams 

is currently the Director for the Center for Performance and Integrity at George Mason University. Mr. Williams is the former Inspector General (IG) for the United States Postal Service, having 

retired in 2016. He has also served as the watchdog for the Department of Housing and Urban Development (HUD) and Internal Revenue Service (IRS), among other agencies. 

Mr. Williams. 

TESTIMONY OF THE HONORABLE DAVID C. WILLIAMS2 TO BE 

A GOVERNOR, U.S. POSTAL SERVICE 

Mr. WILLIAMS. Thank you, Mr. Chairman, and Senator 

McCaskill, and Members of the Committee. Thank you for considering my nomination. By way of background, my government experience began with military service in the Americal Infantry Division in Vietnam. I then joined the Secret Service. I served with the 

Department of Justice Organized Crime Strike Force in the Labor 

Department’s Office of Inspector General and was part of President 

Reagan’s Commission on Organized Crime. 
7 

I went on to head the Government Accountability Office (GAO’s) 

of Special Investigations. I was then confirmed by the Senate to be 

the Inspector General at the Nuclear Regulatory Commission, the 

Social Security Administration (SSA), and the Treasury. I was also 

the first IRS Inspector General, and for a time was simultaneously 

acting as the Inspector General for HUD. Most recently, I served 

as the Inspector General for the Postal Service for 13 years, until 

2016. 

As the Postal Service Inspector General, I conducted audits of 

program efficiency and effectiveness and worked closely with the 

outside auditor to review Postal Service financial statements. The 

office also conducted investigations to ensure the integrity of the 

organization’s actions and its business dealings. I am currently a 

Distinguished Professor at George Mason University. 

I believe the Postal Service has long served an important role in 

America. As an economic engine for commerce and in supporting 

the daily, the communications, and logistic needs of Americans. I 

believe that the contribution of the Postal Service continues in this 

fast-moving and disruptive era. We are certainly fortunate to live 

in these times but they are continuously challenging and disorienting for citizens and commercial enterprises. The Postal Service and other American infrastructures are stabilizing constants, 

enabling opportunity while supporting citizens and businesses in 

this complex ecosphere. 

Each year the Postal Service continues to protect the privacy and 

security of its 150 billion mail and parcel pieces, vigorously investigating thefts and abuses. The business model since 1970 relies 

entirely on revenues from its product sales. The Postal Service provides the Nation with an unconflicted infrastructure serving the 

public good. 

The Postal Service recently navigated an immense storm that included digital messaging diversion, an historic economic downturn, 

and while serving as the sole participating in a major experiment 

to pre-funds its $400 billion benefit programs. And, as a result, 

there is rightfully a concern for the finances of the Postal Service, 

which are currently difficult for stakeholders to interpret and understand, and stakeholders, as a result, often accuse one another 

of understating or exaggerating the financial results. 

I believe it is essential for the financial condition to be more 

clearly presented, so that decisionmakers can make important 

judgments and chart the future. A first step is to decompose postal 

liabilities into component parts and to more clearly define the universal service obligation. 

I also believe that Congress could use the Postal Service to further support American citizens and to position business enterprises 

for opportunities and challenges of the digital global era. Today I 

suspect the Postal Service leaves much of its value to the Nation 

on the table. 

The country is also facing the promise and the specter of coming 

megacities, featuring smart systems and the Internet of Things 

(IOT). New systems must integrate our neighborhoods with our cities and surrounding regions and to the world. Binding our coming 

nation may actually be more challenging in the near future than 

in our past. 
8 

1The prepared statement of Mr. Duncan appears in the Appendix on page 111. 

The Postal Service’s facilities and truck fleet could help collect 

and provide needed data for the Internet of Things and perhaps 

serve as platforms to increase internet broadband access. 

The digital age is still unfolding and the period ahead is likely 

to be challenging. The Postal Service’s trusted presence in every 

American neighborhood could make it a candidate for new national 

mandates should Congress direct. The neighborhood operations of 

the Postal Service often provide the most visible presence in the 

daily lives of American citizens. This is particularly true in rural 

areas, where the Postal Service may be vital to enabling citizens 

of small towns and rural areas to enjoy the lives that we have intended for all Americans. 

If confirmed, I look forward to the challenges of this complex era 

and working with you to respond to the needs of our Nation. Thank 

you. 

Chairman JOHNSON. Thank you, Mr. Williams. Our next nominee 

is Robert Duncan. Mr. Duncan is currently the Chairman and 

Chief Executive Officer (CEO) of the Inez Deposit Bank and is the 

former Chairman of the Tennessee Valley Authority. He has over 

40 years of experience in community banking and the financial 

services industry in rural Kentucky. 

Mr. Duncan. 

TESTIMONY OF THE HONORABLE ROBERT M. DUNCAN1 TO BE 

A GOVERNOR, U.S. POSTAL SERVICE 

Mr. DUNCAN. Mr. Chairman, Ranking Member McCaskill, and 

Members of the Committee, thank you for holding this hearing to 

consider nominations to the U.S. Postal Service Board of Governors. I am, as you know, Robert M. Duncan of Kentucky, and I 

am pleased to be joined today by my colleagues, David Williams of 

Illinois and Calvin Tucker of Pennsylvania. I thank the President 

for having the confidence and trust to nominate me for this important job. I greatly appreciate the encouragement of my Kentucky 

Senators. Senator Paul, thank you for being here today and the 

words that you spoke, and Leader McConnell, I thank you very 

much for being here and speaking on my behalf. 

As you know from the material submitted, I have been involved 

in government, business, and politics at all levels over my career. 

I believe that my experiences in the public, private, and nonprofit 

sectors make me uniquely qualified to serve as a Governor of the 

U.S. Postal Service Board. I have studied management and leadership in different sectors and have an appreciation of the differences, similarities, and best practices in each. 

The Postal Service is an interesting blend of a public, private, 

and nonprofit organization. My service on the Tennessee Valley Authority Board helps me understand this unusual but important 

structure. I was selected a member of the President’s Commission 

on Executive Exchange in 1989 and 1990, and I worked at the 

White House in the Office of Public Liaison while studying public 

and private organizations. I have served in many other governmental positions at the local and State levels and currently serve 
9 

as Chairman of the President’s Commission on White House Fellowships. 

My work with nonprofit organizations includes the Christian Appalachian Project, chairing a State University board, and serving 

for many years as Chairman of Alice Lloyd College. In addition I 

was Treasurer, General Counsel, and, finally, Chairman of the Republican National Committee. 

As a community banker in Appalachia, I have worked with many 

small businesses and have an appreciation for the challenges and 

potential of rural America. My work with the American Coalition 

for Clean Coal Electricity gave me experience of working with 

CEOs of the largest railroads, utilities, and energy companies in 

the country. 

In addition to my undergraduate and law degrees, I have attended numerous Executive Education programs including programs at the Kennedy School of Government at Harvard and the 

Harvard Business School. I believe I have both the practical and 

theoretical knowledge to be an effective member of the Postal 

Board of Governors. 

On a personal note, my grandfather, Walter Duncan, carried 

mail on horseback in eastern Tennessee and one year was on a 

train from Cincinnati to Chattanooga as a mail sorter. I have been 

interested in the post office all my life. 

I consider the Postal Service a public trust as every American 

citizen enjoys universal service. Referenced in the Constitution, the 

organization has served to bind America together for over 200 

years. The Postal Service is in daily contact with virtually every 

business and citizen. The local postal employees are the primary 

contact of most Americans with their Federal Government. 

My approach to leadership and governance is simple. It is my 

goal to include all stakeholders through aggressive outreach and 

communications. The working relationship with the Postal Service, 

Congress, and the Postal Regulatory Commission is critical. More 

transparency in governing helps stakeholders plan for the future. 

An adequate staff is necessary for this Board to carry out its planning and oversight responsibilities. But I believe the reconstituted 

Board will be strong and independent. 

As a new Board member, I do not begin with an agenda of specific recommendations. I support a thorough and transparent planning process. The basic business model must be examined carefully. I will learn as much as possible, as soon as possible, to understand the financial conditions of the organization, Mr. Chairman. 

The work of the Board will be particularly challenging as we 

begin our tenure. There are many unresolved issues and pending 

legislation that will require flexibility in our approach. 

Issues that I expect to confront us are: (1) Governance structure. 

What are the relationships with Congress and the PRC? (2) Universal service. What is the intent of Congress? (3) Delivery frequency. What is the optimum number of days of service each week? 

(4) Delivery standards. What is reasonable and affordable? (5) 

Changes in rates. What are the constraints? (6) Rural service. 

What is fair to all Americans? And then (7), Mr. Chairman, opioids. 

What can be done to protect the mail, customers, and employees? 
10 

1The prepared statement of Mr. Tucker appears in the Appendix on page 171. 

If confirmed, I look forward to working with Congress, my colleagues, the leadership of the Postal Service, the Postal Regulatory 

Commission, and the stakeholders. The Board’s role is to establish 

policy, monitor results, and evaluate management. As a board I believe that we can accomplish this mission. 

Thank you for considering my nomination, and I look forward to 

your questions, Mr. Chairman. 

Chairman JOHNSON. Thank you, Mr. Duncan. 

Our third nominee is Calvin Tucker. Mr. Tucker currently owns 

and is the Managing Partner for Eagles Capital Advisors LLC, a 

financial consulting business. His work is focused on turning 

around struggling businesses and starting small businesses in 

Philadelphia. Mr. Tucker has over 30 years of experience in the financial services industry. 

Mr. Tucker. 

TESTIMONY OF CALVIN R. TUCKER1 TO BE A GOVERNOR, U.S. 

POSTAL SERVICE 

Mr. TUCKER. Thank you and good morning Chairman Johnson, 

Ranking Member McCaskill, and Members of the Committee. It is 

my pleasure to be here today. I want to thank the President for his 

decision to nominate me to become a member of the Postal Service’s Board of Governors. I am honored and humbled by the confidence that President Trump has placed in me. 

I also want to thank my wife, Sharon, who is with us today, and 

my family, represented by my two sons, Aaron and Bradley. Those 

who could not join us include my daughter, Sheneen, and my 

granddaughter, Amaya, and my mother, Emma. I want to thank 

them all for their support in everything we have accomplished as 

a family. 

Over my 43 years, I have worked at many diverse organizations, 

and I have had the privilege to serve on numerous community and 

nonprofit boards. From this experience, I believe I can truly appreciate these communities. If confirmed, I will bring that perspective 

to help the Postal Service better focus on the needs of the small 

business and community groups. 

For example, in my consulting practice, many clients are single 

operators who struggle with their day-to-day responsibilities. They 

will ask questions like, who can help marketing, sales, or simply 

get product to the customers? So can the Postal Service simplify 

shipping options so there is one less thing for them to worry about? 

Are we doing enough to support nonprofits and their good work? 

If I am confirmed, these are the kinds of questions I will ask. I 

want to work with the small business community, postal management, and all stakeholders to ensure that everyone is well represented at the Postal Service. Today, it is essential that the Postal 

Service consider this small business perspective. Large companies 

can leave mail in favor of digital, but mom-and-pop businesses still 

need innovative solutions. For example, a neighborhood accountant 

may struggle with a digital advertising campaign, so a mail-based, 

local solution may be necessary. Are we doing everything we can 

to make it the easy and cost-efficient choice? A rural farmer may 
11 

not have broadband, but she should always be able to count on 

mail delivery. How can we service these rural customers better? 

While my experience is in the small business community, I also appreciate that the Postal Service is a huge part of our Nation’s economy. From the smallest to biggest business, from the cities to the 

countryside, from the richest to the poorest, the Postal Service is 

public service without playing favorites. Every day it delivers mail 

to more than 154 billion homes and businesses, made possible by 

more than 640,000 hardworking employees. If I am confirmed, I 

will work to ensure that the Postal Service continues to be a significant economic engine for all Americans. I am mindful, however, 

that the Postal Service faces significant challenges. These include 

large financial losses, growing debt, and a decline of its most profitable product, First-Class Mail. If I am confirmed, I will use all of 

my energy to help find solutions. These solutions, I believe, will be 

found in the Postal Service’s strengths. Its 31,000 post offices connect America. Its workforce is dedicated and knowledgeable. And 

it was, in fact, the very first social media network. If we leverage 

these strengths, I believe the Postal Service can flourish. While I 

do not have all the answers, if confirmed, I pledge to bring my perspective and experience, listen closely to all stakeholders, including 

Congress, and always remember the tremendous responsibility I 

have been given. Thank you, Chairman Johnson, Ranking Member 

McCaskill, and Members of the Committee. I look forward to any 

questions that you may have. 

Chairman JOHNSON. Thank you, Mr. Tucker. There are three 

questions the Committee asks of every nominee, for the record. I 

will ask the question then just, in order, starting with Mr. Williams, just answer yes or no. 

First of all, is there anything you are aware of in your background that might present a conflict of interest with the duties of 

the office to which you have been nominated? 

Mr. Williams. 

Mr. WILLIAMS. No, Sir. 

Chairman JOHNSON. Mr. Duncan. 

Mr. DUNCAN. No. 

Chairman JOHNSON. Mr. Tucker. 

Mr. TUCKER. No. 

Chairman JOHNSON. Do you know of anything, personal or otherwise, that would in any way prevent you from fully and honorably 

discharging the responsibilities of the office to which you have been 

nominated? 

Mr. Williams. 

Mr. WILLIAMS. No, sir, I do not. 

Chairman JOHNSON. Mr. Duncan. 

Mr. DUNCAN. No, Senator. 

Chairman JOHNSON. Mr. Tucker. 

Mr. TUCKER. No, sir. 

Chairman JOHNSON. Finally, do you agree, without reservation, 

to comply with any request or summons to appear and testify before any duly constituted committee of Congress if you are confirmed? 

Mr. Williams. 

Mr. WILLIAMS. I do. 
12 

Chairman JOHNSON. Mr. Duncan. 

Mr. DUNCAN. I do, Mr. Chairman. 

Chairman JOHNSON. Mr. Tucker. 

Mr. TUCKER. I do. 

Chairman JOHNSON. Well, my intention was to actually defer to 

our Ranking Member, so I can respect the other Committee Members’ time. Are you ready to go for questions? 

Senator MCCASKILL. Sure. 

Chairman JOHNSON. OK. Senator McCaskill. 

Senator MCCASKILL. Let me first ask a brief yes-or-no question 

for all three of you. Do you agree to provide information and documents when requested by Members of Congress, regardless of 

party? Mr. Williams. 

Mr. WILLIAMS. I do, Senator. 

Senator MCCASKILL. Mr. Duncan. 

Mr. DUNCAN. Yes, Senator. 

Senator MCCASKILL. Mr. Tucker. 

Mr. TUCKER. Yes. 

Senator MCCASKILL. Do you believe that the USPS management 

should comply with the requests for documents and information 

from Members of Congress, regardless of party? Not you, specifically, but the management. As the Board of Directors, would you 

require the management to respond to requests from Members of 

Congress, regardless of party? Mr. Williams. 

Mr. WILLIAMS. I would, Senator. 

Senator MCCASKILL. Mr. Duncan. 

Mr. DUNCAN. Yes, Senator. 

Senator MCCASKILL. And Mr. Tucker. 

Mr. TUCKER. Yes, Senator. 

Senator MCCASKILL. Thank you. 

Mr. Duncan, before I get into some of the postal issues, I want 

to just ask you briefly, I know that you have run a bank and banks 

are typically closed on Federal holidays. Were there any Federal 

holidays where you required your employees to work? 

Mr. DUNCAN. There are no mandatory Federal holidays that our 

employees are required to work. 

Senator MCCASKILL. Let me put it this way. Are there Federal 

holidays where the bank is closed and you required your employees 

to work? 

Mr. DUNCAN. We have dates where we do training and the bank 

is closed on those days. 

Senator MCCASKILL. And what holidays would those be? 

Mr. DUNCAN. In the past it has been President’s Day, occasionally it is Martin Luther King (MLK) Day. 

Senator MCCASKILL. So every year you require your employees to 

work on both MLK Day and President’s Day? 

Mr. DUNCAN. Senator, I am not sure. I have been absent from 

the bank for a period of time. I would like to be able to respond 

to you—— 

Senator MCCASKILL. Well, that would be important, because if 

MLK Day is the only day that you require your employees to work 

when the bank is closed, that would be something I think this 

Committee would want to know about. 
13 

Mr. DUNCAN. I can tell you that they are required to work on 

President’s Day. I am sure of that. 

Senator MCCASKILL. OK. Well, if you would get us the details of 

that, I think that is important. 

Mr. DUNCAN. Thank you. 

Senator MCCASKILL. Thank you. 

Let us talk about last-mile delivery and negotiated service agreements. I want you to know that when I began talking about this 

several years ago, I kept getting reassured that I would get this information. It was clear to me that there had not even been a thorough cost-benefit analysis done as to what they should be charging 

UPS and FedEx for last-mile delivery. So I kept drilling down and 

trying to get information, and eventually I came to the conclusion 

that I was not going to get anything from management other than 

‘‘trust us.’’ 

Now I need to let you know that, on top of that, I have been approached by people who lobby for both FedEx and UPS, saying, 

‘‘You are right.’’ I had one of the companies go so far as to tell me 

that the Postal Service has no idea whether it is maximizing its 

profits on these agreements. 

You can imagine, in light of—I mean, it feels like, to me, that 

their—I am so concerned that their desire for volume has overwhelmed good business decisions, their desire to cut costs has overwhelmed good business decisions, particularly when you talk about 

the competitive edge we represent, in terms of the number of days 

we deliver and our access to the last-mile architecture. 

If confirmed, would you work with me to ensure that I get a copy 

of these contracts, Mr. Williams? 

Mr. WILLIAMS. Yes, Senator. I want to know more about what is 

going on. I was present a number of times when you made that 

representation. 

Senator MCCASKILL. You were in the room when I have been hollering about this as IG, right? 

Mr. WILLIAMS. I was, and I remember, I think the first time and 

the other times as well. So I know that it has been going on for 

a long time, and I know that you have a good concern, and it is 

a very interesting question. So we do need to get into it. We do 

need to work with your staff, who I have considered friends for 

many years, and get to the bottom of it, and I am sorry that that 

has not occurred as yet. 

Senator MCCASKILL. Yes. I understand that they do not want information out in the public domain, in terms of a competitive business situation. That is perfectly understandable. But keep in mind, 

we go into classified briefings and learn things all the time, that 

hopefully most of us never share. I am not anxious here to trot out 

private business information. I am anxious to figure out whether 

or not we are maximizing profits on the part of the system that is 

most expensive to us. To me, that seems like a simple oversight request, and I am frustrated that this has been so hard. 

Mr. WILLIAMS. And I know that—— 

Senator MCCASKILL. Did you ever have a chance to look into this 

when you were IG, as to whether or not they were maximizing 

profits for these co-optition agreements? What do they call them? 

Not competition but—— 
14 

Mr. WILLIAMS. Co-optition. 

Senator MCCASKILL. Yes. 

Mr. WILLIAMS. We did look at the National Security Agency 

(NSA) process and I am not sure we looked at these particular 

agreements other than to assure that they met the floor. So they 

have a legal deal. Do they have the best deal—— 

Senator MCCASKILL. Right. I want to know if they have the best 

deal. 

Mr. WILLIAMS [continuing]. Is another better question. 

Senator MCCASKILL. Mr. Duncan, would you work with me to ensure I get a copy of these contracts, in some form? 

Mr. DUNCAN. Absolutely, and I would work with the Board to 

make sure the Board has copies of the contracts and analysis of 

these contracts. 

Senator MCCASKILL. Yes. I think it would be really important 

that analysis be done, especially in light of the explosive growth of 

packages. I just think that is the future. I do not think we are 

going back, in terms of volume of packages in this country, and I 

am very concerned that we have enabled our competition to be 

more successful while we have hamstrung the Postal Service. 

Mr. Tucker, would you agree? 

Mr. TUCKER. Yes, I will agree to work with you and the Committee to ensure that we all understand these service agreements. 

Senator MCCASKILL. Are all of you comfortable standing up to 

the President if you determine that the deals that have been cut 

with Amazon for delivery of packages are a good deal for the 

United States Postal Service? Mr. Williams? 

Mr. WILLIAMS. I would be entirely, and I am anxious to look into 

it. I would like to look at how NSAs are approved by the Postal 

Service. It appears as though a review has already occurred with 

regard to whether they have met that legal floor, but I think that 

space between the legal floor and the moment we drive Amazon 

away is the space we need to operate in and get an understanding 

of. 

Senator MCCASKILL. Yes. I am just concerned. Presidential task 

forces sometimes tell Presidents what they want to hear, and the 

people who go on the task force are people who want to get in and 

tell the President what they want to hear. 

Mr. Duncan, are both you and Mr. Tucker comfortable with a 

confrontation with the President over the agreements with Amazon 

if you determine they are in the best interest of the Postal Service? 

Mr. DUNCAN. Senator, we have to follow the facts and the facts 

will lead us toward the truth, and that will be what we advocate 

for. 

Senator MCCASKILL. Mr. Tucker? 

Mr. TUCKER. Absolutely. I would not necessarily characterize it 

as confrontation but I certainly would be willing to challenge the 

assumptions if I determined that—— 

Senator MCCASKILL. Well, there is no question he is on a mission 

here. 

Mr. TUCKER. Yes. 

Senator MCCASKILL. He has a thing about the man who owns 

Amazon, and we all kind of follow the tweets and follow his personality as it relates to when he decides to pick on somebody. Those 
15 

who confront him typically are shown the door in not too long a period of time. And I just want to make sure that you are not so 

afraid of being shown the door that you are not willing to do the 

right thing for the Postal Service. 

Mr. TUCKER. Oh, absolutely, I am willing to do the right thing 

and I will challenge any assumptions. 

Senator MCCASKILL. Thank you. 

Chairman JOHNSON. Thank you, Senator McCaskill. I will say 

that I think one of your biggest tasks is going to be extracting the 

information you need to make good management decisions. I share 

Senator McCaskill’s frustration. I have been at this for a number 

of years and we are starting to drill down. I am actually looking 

forward to the task force being able to extract that information as 

well. So best of luck to you. 

Chairman JOHNSON. Senator Paul. 

Senator PAUL. The interesting thing is I think, Senator 

McCaskill and the President, you are on the same side, really, on 

this issue. He is concerned about how much Amazon is charged in 

that last-mile, and that is what we have been talking about, whether or not they are charged adequately or not. 

Senator MCCASKILL. Well, there is a difference, Senator Paul, in 

that Amazon is hiring someone to deliver their packages. UPS and 

FedEx are the competition to the Postal Service. 

Senator PAUL. Right. But there still is—— 

Senator MCCASKILL. Two different animals. 

Senator PAUL [continuing]. There is the question, in that last 

mile, which is very expensive, are we charging Amazon adequately 

or are we charging anybody adequately. And, really, the biggest 

question we face with the post office is, is the post office losing a 

lot of money? I mean, billions and billions of dollars—how are we 

going to keep the post office—I mean, these are enormous questions. 

And so we have to look at rates. For First-Class Mail it is dwindling, so it is not like we can lower the rates and get more money 

through volume. We are just losing the volume in first class. What 

is an appropriate rate? We have to figure that out, and I think we 

have to have the openness to figure that out. 

And I guess it is not so much seeing the contracts is how you get 

to the contract, how you get to that price. when we deliver that last 

mile, which is very expensive, to go down that last mile to Inez or 

some small city, it is very expensive, and are we subsidizing companies by doing that? And we have to look at that, and it is easy 

to define the problem. It is hard to figure out what is the adequate 

rate? 

Right now Amazon does not have a post office to deliver the last 

mile, so it is not like they could do it on their own. There is probably some price at which they would do it on their own, actually. 

But I do not know if we have adequately found that price, and 

maybe there is room for improvement. And so we do have to explore all of that. 

One thing that has amazed me, when we have looked at this before and we have had a bunch of reforms come forward, none of 

them, I think, have adequately really examined the problem, and 

this is a problem but not maybe easy for people to actually get to 
16 

the solution. Eighty percent of the post office’s cost is labor. With 

UPS it is about 50 percent. With FedEx it is about 38 percent. I 

am convinced the post office, because of lack of market forces and 

because their labor costs so much, I do not think they are ever 

going to be profitable unless something happened with the labor 

costs. But involves, sort of union contracts, and how we get to more 

affordable labor, I do not know. 

But I think, really, is that I hope you are all open-minded and 

that you will be open-minded into looking for answers. I do not 

have a specific question here, but I think what I would like to see 

is that maybe after you are approved that 6 months later we come 

back and say, ‘‘What have you discovered and what are we going 

to do to try to fix the post office?’’ 

I think there are things that could be done even short of legislative changes. One, are we charging the adequate rates? Are we negotiating the best deal? And that is the only thing that I would advise, is that maybe we come back and look at this again. And I do 

not think it has to be—Amazon is a big supplier in our State. I like 

Amazon. I like all the employees that work in Northern Kentucky 

for Amazon. 

So I am not against Amazon, but I am for seeing what the price 

is. Are we charging an adequate price for the last mile? It is not 

easy. It is not like there is a philosophic answer to this so we can 

say, ‘‘This is the price that is the appropriate price.’’ Markets determine prices, and so it has to be based on supply and demand. But 

when you have only one supplier, That is why it is difficult to let 

the marketplace work. We have to figure out, is there a way we can 

try to figure out what the market price is for the last mile. 

And I do not say that because I dislike Amazon. I just dislike losing a billion dollars a quarter at the post office, and we have to figure out for all companies that use the last-mile, Amazon just happens to be a big player, but there are thousands of smaller players 

that use the post office in the same way, for the last mile. We have 

to figure out how we are getting the adequate price. 

But I commend you all, really, for wanting to do this service to 

the country, and I hope you will really think long and hard about 

being open to all solutions. 

Thanks, Mr. Chairman. 

Chairman JOHNSON. Senator Portman. 

OPENING STATEMENT OF SENATOR PORTMAN 

Senator PORTMAN. Thank you, Mr. Chairman, and, yes, I want 

to echo Senator Paul. Thanks to you guys for stepping up. This is 

not an easy job. There are lots of challenges, and I think Senator 

Paul is correct about the last mile, and, Mr. Tucker, you talked 

about the importance of that too. So it is not only costly but, qualitatively, it is, in some respects, the most important thing the post 

office does, because no one else is going to do it. And that is a challenge, but there is a bigger challenge, really, in the financials, if 

you look at them, and that is this pre-funding of retiree health and 

how we deal with that, and pre-funding of pensions. And I know 

that that is something that some of you have some expertise on. 

Mr. Williams, in particular, has spent a lot of time looking at 

that, so you bring really important insider information that prob-
17 

ably no one else on the Board of Governors ever has had, about 

what is actually going on. You know where the bodies are buried 

and you have probably buried some of them in your role as IG. And 

Mr. Duncan has the business experience, and he understands how 

government works too, which is helpful. And I appreciate you being 

willing to step up once again and serve your country. Mr. Tucker, 

you talked a lot about your small business background, and you 

have been a successful entrepreneur, and that is sort of the bread 

and butter, ultimately, of the Postal Service. And again, those are 

people who might get left behind if it is not done right. 

So appreciate it, and it is not going to be easy. I know this Committee is looking at the House legislation that came out of their 

committee, and I know Tom Carper has been at this a long time. 

And, by the way, one issue that I feel very strongly about, that 

some of you are knowledgeable about, I know, is this issue of security of the mail system, and particularly the unbelievable threat 

that we have right now with fentanyl. I would just tell you, the 

communities that I represent in Ohio are just getting killed by 

fentanyl. Columbus, Ohio, that county, Franklin County, just did 

their analysis of last year, 2017. A 47 percent increase in overdose 

deaths. Two-thirds of those were from fentanyl. 

And guess how it is coming to that community? Through the mail 

system. I mean, it is coming through the U.S. mail system. And I 

can say that with some degree of certainty because we spent a year 

studying it, Senator Carper and I, on the Permanent Subcommittee 

on Investigation. I think, Senator McCaskill, you were there when 

we started that investigation. 

But it is clear where it is coming from. It is primarily coming 

from China, primarily coming through the Postal Service. When we 

went online undercover with some Federal investigators from 

Homeland Security, the websites that were selling this poison all 

said the same thing—use the Postal Service. They do not want to 

use UPS, FedEx, DHL, or anybody else because the Postal Service 

does not require them to provide the information that could help 

law enforcement to be able to interdict these packages. 

And so I have been on an tirade on this, and we have good legislation that most Members of this Committee, I believe, have already co-sponsored, called the Synthetics Trafficking and Overdose 

Prevention Act (STOP Act). We have had hearings in this Committee. Unfortunately, it is not in this Committee’s jurisdiction, because I know the Chairman cares a lot about it and the Ranking 

Member. I think we would probably have something done by now, 

out of Committee, but it comes out of the Finance Committee, 

which we are working on, because it has to do with our Customs 

agreements. 

But, one, are you all aware of our study on this, and, by the way, 

it says that the post office is doing a little better. They are now 

providing advanced electronic data that law enforcement can use to 

identify these packages on about 36 percent of the packages, as opposed to 100 percent with the private carriers. But even with that 

36 percent we found that 20 percent of the time the Postal Service 

was not presenting the package to law enforcement, and we also 

found out that some of the data was not legible, not usable by law 

enforcement. 
18 

So, fewer a third of these hundreds of millions of packages are 

getting reviewed by law enforcement, and meanwhile, the poison 

keeps coming in and killing more and more Americans. 

So I would just ask you, are you familiar with the report, and 

I would ask all three of you that. And then, second, do you think 

the post office should be providing this advanced electronic data to 

U.S. Customs and Border Protection (CBP) and let the law enforcement, which they say is critical to their ability to try to interdict 

some of these drugs? Mr. Williams. 

Mr. WILLIAMS. I am familiar and deeply appreciate what you did 

with regard to this. This is a nearly unbelievable problem. 

There are some complications. I know that the packages received 

in China are received by China Post, not the United States Postal 

Service. There are some hopeful signs, as you said. There is a growing number of packages, any packets coming in from China, that 

do have the data on it, and that is increasing. 

I would like to know more, too, about what we are doing with 

the data that we receive, both with regard to Customs and the 

postal authorities. What kinds of data analytics are we engaged in? 

You have to really move fast when that data arrives or it really is 

not worth anything. 

I would like to know, is there any daylight between the efforts 

of the enforcement agencies? The role of the Customs broker, for 

the private express carriers, I would like to know more about. Is 

there a value-added there, and where are we exploiting that, as 

well as the advanced entry data. 

Senator PORTMAN. Let me just say, briefly, the big data capability is impressive, and when law enforcement is provided with 

this data it is extraordinary what they can do with it, the analytics 

that they have in place. You are probably aware of that from some 

of your other experience. But they are much more sophisticated 

than they used to be, and so it works well in the context of these 

private carriers. 

And I have been to the sites and I have seen what happens, how 

they pull packages off and how they can get that data immediately. 

As you say, it has to be real-time. But the post office has to have 

that level of sophistication too, to be able to present the packages 

that they identify as suspicious, and that is not happening, and obviously they are not even requiring it from a lot of countries. So 

there is much more to be done. 

Mr. WILLIAMS. There have been some problems at the international centers that are related to that, and I think it would be 

a great area for us to focus on, for a number of reasons. But certainly opioids is the one that care most about. 

Senator PORTMAN. So if you were confirmed for this job, you 

would want to focus on that and support providing that advanced 

electronic data to law enforcement? 

Mr. WILLIAMS. It would be something I would want to do the 

very first day. 

Senator PORTMAN. Thank you. Mr. Duncan. 

Mr. DUNCAN. Thank you, Senator. Yes, I am familiar with your 

report. I am also familiar with the ravages that are going on in the 

part of the world where I live, in Appalachia, Huntington, West 
19 

Virginia; Ashland, Kentucky; Pineville, Kentucky. That whole area 

is very personal. 

I do not know all the facts. I do not know as much about it as 

my colleague, Mr. Williams. But I am optimistic about technology. 

I have some data background, as you know, and I believe this can 

be a problem that can be solved. I cannot tell you when. I do not 

know what the finances are. I have a lot of questions about it. But 

it is a commitment. It is one of the seven issues that I mentioned 

today. 

Senator PORTMAN. Yes. Thank you, Mr. Duncan. Yes, I think 

your background in terms of using data is very important. Mr. 

Tucker. 

Mr. TUCKER. Yes, Senator. I am generally familiar with it. If confirmed, I will certainly look at it. And as I said in my questionnaire, anything we can do to provide to law enforcement to protect 

our workers and the American citizens I am in favor of as well. 

Senator PORTMAN. Thank you to all three of you. Thank you, Mr. 

Chairman. 

Chairman JOHNSON. Senator Heitkamp. 

OPENING STATEMENT OF SENATOR HEITKAMP 

Senator HEITKAMP. Thank you, Mr. Chairman. This is definitely 

a very important hearing for us. The post office has been 

rudderless. We, as a major Board of Directors here on this Committee, but certainly the Board of Directors for the post office has 

not been functioning for a long period of time, and you see the result of that in the numbers that somebody has put together for us 

here. And I know, Mr. Williams, as the former—— 

Senator MCCASKILL. The Chairman put this together late last 

night. 

Senator HEITKAMP. Thank you. 

Chairman JOHNSON. The accountant. 

Senator HEITKAMP. Yes. The accountant. Well, I appreciate this 

because I think it is the best we can do right now to really illustrate the enormous challenges that are ahead of us. 

Now it is no mistake. I have been very aggressive on this issue. 

And to give you a sense of how important this is in North Dakota, 

I opened up a portal on my Web page—now, North Dakota is a 

very small State, population-wise—and it was called Fix My Mail. 

And in a month we had over 500 discrete contacts from people who 

have seen deterioration in service. And just yesterday I was with 

someone from rural North Dakota who thanked me for the work on 

the post office. 

So understand this. Where frequently the problems that we talk 

about here may not have reached America in the same way, America knows that the post office is not delivering the way they used 

to deliver. And I think that has been a responsibility not of the 

men and women who walk and deliver mail. I think it is the responsibility of management. Whether it is us and you guys as the 

future Board of Directors or whether it is the upper management 

of the post office, we have to fix these problems. 

And so I am going to ask just some quick yes-or-no questions for 

all of you. If confirmed as a Governor for the United States Postal 

Service, will you make sure that the Board focuses on strong serv-
20 

ice performance so mail delivery in rural America is protected and 

then improved? 

Mr. WILLIAMS. Yes, Senator. 

Mr. DUNCAN. Yes. It is one of the issues I outlined today. 

Mr. TUCKER. Yes, Senator. 

Senator HEITKAMP. On the record. How would getting postal reform legislation help you in accomplishing your job? And I would 

add to that, have you read Senator Carper, Moran, Heitkamp—I 

think Claire is on this bill too—McCaskill’s postal reform bill, the 

latest iteration here that we introduced a couple of weeks ago. Mr. 

Williams? 

Mr. WILLIAMS. In my mind, you are the reason there is a Postal 

Service. We have, in this room, some of the express companies. 

They are the best in the world. You need us not in those big cities 

but we are needed where you are. 

The reform bill that is coming through, and has been presented, 

is aimed at reestablishing the financial stability of the organization, and that is really the only thing in my mind that ought to be 

a challenge at all. Our dedication to you is absolute. You are the 

reason we have. 

Senator HEITKAMP. We are going to hold you to that, Mr. Williams, because frequently what we find out is that when push 

comes to shove and we end up financial, we start hearing about reducing service, we start hearing about reducing delivery. And the 

other problem that we have—and I will just take a moment—is 

getting appropriate data. Never mind financial data. Getting service-related data that we can rely on. We come into the post office 

and say, ‘‘Look, it took 10 days to get a letter.’’ They go, ‘‘No, that 

does not happen.’’ Well, yes, it does happen. I mean, do not call the 

people who are talking to me fibbers. This happens. 

And so, Mr. Duncan, can you illuminate us at all on what your 

expectations would be of this Congress, in this giving you the tools 

you need to reestablish stability, financial stability, at the Postal 

Service? 

Mr. DUNCAN. Thank you, Senator. I have not read the report, the 

new legislation, but I have read press reports of it, and I think it 

goes to the heart of what we are about. We have to develop a business model that requires the cooperation, first, of Congress. It has 

to be of our regulator, the Postal Regulatory Commission. It has to 

be of this Board and our stakeholders. And I believe bringing that 

group together is how you do it. 

I am very aware of the level of service difference today as compared to 20 years ago, as someone who uses the mail both professionally and in my business. 

Senator HEITKAMP. And, Mr. Tucker, we will give you a chance 

too. My baseline question is, can you actually do what you hope to 

accomplish for the Postal Service without a postal reform bill? 

Mr. DUNCAN. No. 

Mr. TUCKER. No. 

Senator HEITKAMP. So we are sending you on a mission that is 

doomed for failure unless we do our job here. Mr. Tucker, is that 

a fair statement? 

Mr. TUCKER. I would say that 90 percent of what we need to do 

is directed to Congress. I think we need a reform bill. I think we 
21 

need to move a 20th Century business model to the 21st Century, 

and I think the reform bill, as I understand it, goes a long way to 

move us in that direction. 

Senator HEITKAMP. So our choices are pretty limited. Your 

choices are going to be pretty limited if we do not do postal reform. 

You are going to sit in a room and you are going to move money 

from this pile to that pile, and hope you can make it happen. But 

there is not any certainty of success in stabilizing the financial outcome or the financial situation for the post office. There is no likelihood of success if we do not do postal reform. Would you agree, Mr. 

Williams? 

Mr. WILLIAMS. Both limited and extremely controversial. The decisions ahead of this, without postal reform get very bad, very fast. 

Senator HEITKAMP. Mr. Duncan? 

Mr. DUNCAN. The business model must be changed. I am an optimistic person and I think there are things that can be done at the 

margin, but this comes down to the basic model. 

Senator HEITKAMP. Mr. Tucker. 

Mr. TUCKER. Yes, I agree. As I indicated in my opening remarks, 

we can do some business development and bring new clients to the 

marketplace, particularly small business and community groups 

and nonprofit organizations. But at the end of the day, we need reform. 

Senator HEITKAMP. Yes. I mean, I would just say this. It is like 

a business that has not modernized, a business that has not taken 

the appropriate steps for a long period of time, in part because they 

have been squeezed by requirements of Congress, requirements of 

this Board of Directors, at this table. And so now, to suggest that 

we can do this without some kind of opportunity to stabilize in the 

short term, your job is going to be extraordinarily difficult. 

And so I am committed, as I have been since I got here, that we 

ought to do our job, and that you cannot do your job unless we do 

our job, and get you the right set of circumstances. 

So I want to thank every one of you, and your families, for you 

guys taking on this job. I think it is one of the hardest jobs right 

now in America. And I appreciate the extent of the service and the 

diversity of the opinion here, and I look forward to working with 

you after you are approved, and get the Board of Directors up and 

running so that we have a partner that we can work with as we 

move postal reform. 

Thank you, Mr. Chairman. 

Chairman JOHNSON. Thank you, Senator Heitkamp, and I appreciate you noticing my little income statement. Let me take just a 

minute here to talk about the numbers, because it is actually pretty stark and pretty easy. 

Setting the income statement sheet aside, if you just look at the 

balance sheet, as of September 30, 2017, when you combine the 

current retired health care benefit liability with the Civil Service 

Retirement System (CSRS) liability, the Federal Employees Retirement System (FERS) liability, and the long-term retiree health 

care benefits, that totals $440 billion. The fund has a balance of 

$336 billion. That is leaving an unfunded balance of $104 billion. 

That is the problem. 
22 

On the income statement you can see, over the last 11 years, of the $63.9 billion loss that the Postal Service reported, $62.5 billion 

of that is the pre-funding of that liability. 

So if you are not really willing to take a look at how do you fund 

that obligation to retirees—I mean, you can talk about postal reform but you have to really understand exactly what we are talking 

about. And we can also throw in pretty words like ‘‘Medicare integration,’’ but it has been pulling teeth trying to figure out what 

does that actually cost, what has been contributed, what has been 

used by postal—I cannot get it. I have been trying to get it for 

years. 

This little income statement here is the result of extracting information kind of bit by bit from the Postal Service to try and lay out 

exactly what has happened over the 11 years so we can understand 

what is happening moving forward. But again, I mean, the basics 

are in terms of pre-funding, the pre-funding to the tune of about 

$20 billion, and they have defaulted on about $41.7 billion. And 

that just tells you it is kind of hard to follow verbally, but is all 

in the long-term pension and health benefit liability. That is the 

problem. Senator Peters. 

OPENING STATEMENT OF SENATOR PETERS 

Senator PETERS. Thank you, Mr. Chairman. And I will just echo 

the comments made by my colleagues here, and Senator Heitkamp, 

in particular. You have a very tough job ahead of you, if confirmed. 

We appreciate your willingness to take on this challenge. But it is 

a challenge that has to be met, particularly in our rural areas. 

Michigan is an urban State but it is also an incredible rural State, 

particularly in Northern Michigan and Michigan’s Upper Peninsula, which is a very rural area. 

And whether it is a retiree waiting for a Social Security check 

or life-saving prescriptions, this is a very real and a very big deal 

for folks, which is why I concur with the sentiments that I have 

heard about the need for postal reform. It is up to us to push this 

forward, and I certainly appreciate Senators Carper, Moran, 

Heitkamp, and McCaskill—thank you for your leadership on this 

issue. Senator Johnson, I know this is something you want us to 

focus on as well. We need to make this a priority and move something going forward, and I hope we do that very well. 

But Senator Heitkamp alluded to something, the kind of complaints that I have been hearing fairly regularly too, which is how 

do you balance the very challenging fiscal situation that the Postal 

Service is in with service? As you cut service to meet the demands 

of the fiscal needs, then people become disenchanted with the Postal Service and try to look for other options. And then you get, basically, on a slippery slope. You cut more services, you lose more 

business, and your revenue goes down so you have to do more cuts. 

And so I want to focus on a couple of areas that I have been 

hearing a great deal about, and one of those areas is the consolidation of mail processing centers. As a result of unrealistic budget requirements, we are concerned that two more centers in Michigan 

will be placed on the chopping block—basically, one in the Upper 

Peninsula near Iron Mountain and another in Lansing that service 

a great deal of Northern Michigan. We had a facility near Kala-
23 

mazoo in West Michigan close recently. The pattern of shutting 

down these processing centers, it seems clear, means that it takes 

a lot longer for mail to get to places because it is not being processed as quickly with a number of facilities. 

So I would like to have each of you tell me, will you weigh in 

on decisions related to consolidation of mail processing centers, and 

how are you going to weigh cost savings with customer service, 

given the current situation that you are in? 

We will start with you, Mr. Williams, and if we could go down 

and kind of get a sense. How do you grapple with this challenge? 

Give us a sense of your decisionmaking process. 

Mr. WILLIAMS. The Postal Accountability and Enhancement Act 

(PAEA) legislation did a lot of good, particularly in the early years, 

but it did go on a long time. And as those budget cuts became more 

extreme in order to meet our obligations, the downsizing became 

less measured, the targets of opportunity were all wiped out, and 

there were a number of targets of opportunity. And we are now 

down to what needs to be a very scientific process. And I think we 

can only do it through modeling. We need to understand the universal service and we need to create a modeled network that will 

deliver that. 

I know, from my work as the Inspector General before, some of 

the early analyses efforts for the impact of closure were wrong and 

mistakes were made. And some of the mistakes became more frequent as the financial crisis became more serious. 

So I am a huge believer in modeling. I do not believe we can 

close things through professional judgment any longer. Those are 

all gone. And we need to show you how we are going to do it, and 

give everyone a chance to arrive at the same conclusion that we 

did, that we now have the model for a network that will deliver on 

our promises. 

Senator PETERS. Thank you. Mr. Duncan? 

Mr. DUNCAN. I agree with what my colleague is saying today. I 

guess I am an optimistic person and I start on the revenue side 

first. I think that is where I look before I start doing the cuts, because, as a business person I know that there is a tipping point, 

that if you cut into the muscle then you lose many other things in 

an organization. So my predilection would be to start looking on 

the revenue side to make sure that we are properly charging for 

our services. 

I think defining what universal service means, what Congress 

means by that, will help us along the way. I have felt the cutbacks, 

personally, in the processing centers. I have seen the change in the 

standard. We need to know what the American people want, what 

Congress wants, what our stakeholders want. 

Senator PETERS. Thank you. Mr. Tucker. 

Mr. TUCKER. Yes. I agree that modeling is an area that we need 

to look at. We need to define that universal service obligation, what 

it means today, and how do we maintain our service standards in 

communities across this country. I would look at both revenue and 

expenses in making decisions. But I think we need to see all of the 

analytics around how it is going to affect those communities before 

decisions are made with respect to consolidation or doing some 

other things. 
24 

Senator PETERS. The strength of any organization is dependent 

on the people within that organization. So morale, as all three of 

you know, is incredibly important to having an efficient, well functioning organization. People have to come to work motivated to do 

a good job and take pride in their work. And what I have heard, 

on a regular basis, is that morale is a challenge at the Postal Service. Workers feel that they have too much mandatory overtime, 

their opinions are not listened to, and they are not communicated 

to in terms of some of the decisions that have to be made, sometimes difficult decisions. 

So in the remaining time, if you briefly could give us a sense of 

your vision of how are we going to strengthen the postal workforce 

and the morale in that workforce, which will be critical to making 

sure that this organization runs properly? 

We will start with you, Mr. Tucker, and then work the other 

way. 

Mr. TUCKER. No, morale is key to a strong and committed workforce. I think some of the internal tools that the Postal Service 

should use, it is internal communications, to communicate some of 

the issues that we face, some of the opportunities, and bring people 

in on an incentive basis to help them create the opportunities they 

want, the income that they are trying to achieve. And I think just 

information is important to driving morale in any organization. 

Senator PETERS. So where does that rank in your priorities, in 

this new position? 

Mr. TUCKER. That ranks pretty high because we do not—as I 

noted in my opening remarks, we have 640,000 people and that is 

the No. 1 asset of the Postal Service is our workforce. And to keep 

an interested and committed workforce is the No. 1, I think, priority that we should strive to do. Because without the workforce, 

we can do all of these reforms and other issues and still not achieve 

what we need because it is the people that is going to make things 

happen. 

Senator PETERS. Right. Mr. Duncan? 

Mr. DUNCAN. Well, I think the postal employees have a lot to be 

proud of. Consistently, they have delivered the mail, day in, day 

out. They are consistently ranked as the best government agency, 

and I think they have a lot to be proud of. 

On the other hand, they have to have constant communication, 

and that communication is in the form of education. They have to 

understand it is up to us. The tone is set at the top by the management of the postal board. That is how they work with the union 

representatives but also the rank and file everyday member of the 

organization. And it is communication. It is constant and consistent 

communication. 

Senator PETERS. So that will be one of your priorities? 

Mr. DUNCAN. It has to be one of the priorities of the organization. 

Senator PETERS. All right. Thank you. Mr. Williams? 

Mr. WILLIAMS. The last couple of years have been really rough 

on the Postal Service employees. In response to that, they have 

risen to the occasion. They were the first ones back after September 11, 2001, after Hurricane Katrina. And their morale has 

taken a beating but it is extremely high. It is a very dedicated 

group. And as Senator McCaskill said, there are 113,000 veterans 
25 

there, and they bring with it the discipline that they learned to this 

new job. 

We downsized very fast. It reached a reckless pace. The wheels 

were coming off the wagon. And also we focused so much on our 

problems that we only focused on our problems, and there were 

some extraordinary accomplishments that we forgot to thank people for. They are our assets. They are 80 percent of our operation, 

and we need to take care of them and thank them for what they 

have done. We need to focus on the successes as well as the problems ahead, and the successes have been enormous. 

We also kind of inherited a legacy before any of us were on the 

scene in this. There were labor management problems that went 

back to the 1950s and the 1960s, that still sort of cast a pall over 

things. I am glad that you mentioned this. It is a big deal and we 

never talk about it, and its time has come. We need to address this 

and make sure that morale remains high and we do not just, intuitively, rely on it. 

Senator PETERS. Well, I appreciate that. I appreciate all three of 

your comments. It is a strong workforce. They care deeply about 

their job. But it is important to celebrate them and it is important 

to make sure that they are a part of the decisionmaking process, 

because they do bring a great deal of expertise to the job each and 

every day. So thank you for your comments. 

Chairman JOHNSON. Thanks, Senator Peters. Mr. Williams, real 

quick while we are on the subject of employee morale, having been 

the Inspector General, do you happen to, off the top of your head, 

know the top pay scale, on a per-hour basis, for postal workers? 

Mr. WILLIAMS. I think I understand. There is a pay scale for all 

of the various professional series. 

Chairman JOHNSON. Just for a letter carrier. Do you know what 

the top pay scale is? 

Mr. WILLIAMS. I have it in my head that it is around $50,000. 

Chairman JOHNSON. Do you know how soon they can retire on 

full benefits, how many years? 

Mr. WILLIAMS. I think it is a combination of experience and age, 

and I think it is about 30 years of experience. 

Chairman JOHNSON. OK. Again, we will explore all of this as we 

work together with the task force. 

Mr. WILLIAMS. And if I am wrong, I will send a confirmed note. 

Chairman JOHNSON. No. Again, unfair question at this point in 

time, but because of your past experience I thought you might be 

able to answer it. 

Mr. WILLIAMS. I think that is right. 

Chairman JOHNSON. OK. Senator Carper. 

OPENING STATEMENT OF SENATOR CARPER 

Senator CARPER. A couple of guys on—probably some gals as 

well, on our committee, are baseball fans. Senator Peters and I 

both turned out to be Detroit Tigers fans, for reasons I will explain 

later. Ben Cardin is our big Orioles fan. And I watched the end of 

the Tigers-Orioles game last night, where the Tigers actually won 

a game, 4–2. And one of the things that you are always worried 

about as a pitcher, is that you are not telegraphing your pitches. 

You want to telegraph your pitches to the hitters. 
26 

I am going to telegraph my pitch, and my first pitch deals with 

revenues, which I think, Mr. Duncan, you mentioned. And I think 

I have met you before. I am happy to meet you today and to welcome you, and thank you for your willingness to serve. We have 

known David Williams for a long time and just thank him for all 

of his service. 

Mr. WILLIAMS. Thanks, Senator. 

Senator CARPER. We need Governors. I am an old Governor. We 

need Governors, desperately. To have the idea we have maybe the 

second-largest business in the country and we do not have a Board 

of Directors, we do not have a Board of Governors? I mean, that 

is awful. And hopefully we can do something about that real soon, 

and we can also move a kind of bipartisan legislation, Senator 

Moran and I, and others, have worked on with folks in the House. 

But I am delighted that we are here today. This is an important 

step. 

All right. Before we talked about—and the pitch I am going to 

telegraph is to ask you what the Postal Service should be doing to 

innovate, to bring in revenues, the kinds of revenues it needs to be 

able to invest in capital, whether it is capital in processing plants, 

post offices, technology, technology on new vehicles that actually do 

not break down, that are not 30 years old, and they are actually 

a better size for the kind of work the Postal Service is doing these 

days with packages and parcels. So To start thinking about that. 

And I will just say, as a backdrop, the Postal Service has gone 

through a lot of cutting, as I am sure Mr. Williams knows. They 

have half as many processing centers as they used to have, onehalf. They have about a third as many full-time employees as they 

had before. And about a third of all the post offices across the country no longer are open 6 days a week, say from 8 or something in 

the morning to 5 in the afternoon. We are basically on a much 

tighter—slower schedule—smaller schedule. And there is a menu of 

options that smaller communities and towns can take in terms of 

how do they want to provide service to Postal Service, to their residents and their customers. 

But one of the things that I focused on as Governor for 8 years 

is balancing budgets, and we were fortunate to be able to balance 

budgets 8 years in a row. We actually reduced taxes 7 out of 8 

years. A lot of jobs were created. I am told more jobs in those 8 

years than any 8-year period in history in the State of Delaware. 

The reason why I mention that is we paid off debt. We got AAA 

credit ratings for the first time in State history, and I was so proud 

of that. So proud of little Delaware getting AAA credit ratings, 

across the board. And I remember after we got the AAA credit ratings, meeting with the rating agencies the next year, and they said, 

you have done—and not just me, but previous Governors and legislators—Pete du Pont, Mike Castle and others—did really yeoman’s 

service in terms of their fiscal responsibilities and leadership. 

But each of the rating agencies said to us, me and my cabinet, 

they said, ‘‘You have done, over the years, really responsible stuff, 

good stuff in managing your State’s finances. You still have one obligation, one liability, you now have to address.’’ We literally were 

amortizing 10 years the unfunded liability for pensions. We had no 

money in the pension fund, 10 years later. We were amortizing 
27 

over 40 years, and within 10 years we got there. And we just had 

a lot of extra money and we just threw it in the pension fund and 

did it in 10 years. 

But fast forward. We have AAA credit ratings in Delaware in 

1999, and the agency said, ‘‘You still have a major liability that you 

have not addressed.’’ And we said, ‘‘What is that?’’ And they said, 

‘‘You have all these pensioners, fully funded pension fund, but they 

have a health care liability that you have not put aside any money 

to address, and you need to do that.’’ And so we started doing that. 

As it turns out, we were not the only one. I did not know. Almost 

no State had even acknowledged that was a liability, health care 

liability through the pensions. And they said, ‘‘You need to get to 

work on that.’’ 

Well, as it turns out, that was like 19 years ago, and if you look 

across the country, you look at most States, most States still have 

not really acknowledged that that is a liability, and they are not 

setting aside money. But they certainly have not funded it to 100 

percent of the liability, on 90 or even 80 percent, or 70 percent, or 

60 or 50 percent. 

And if you look at big businesses, I had my States look at Fortune 100 companies, Fortune 500 companies, Fortune 1000 companies and see what they are doing to fund their health care liability 

for the pensioners. Almost nobody that I know of has actually funded to 100 percent of the liability, and very few are even close to 

50 percent. 

And part of the Postal Service’s problem, as you know, is that 

they have been required to meet a liability—how do you meet this 

liability, a real liability, and how do you do it over a reasonable period of time? How do you do it over 10 years? Well you cannot, and 

that is what we said. You have to not only realize and recognize 

this liability but you have to pay it off in 10 years. 

And sort of, I think, the genius behind what Senator Moran and 

I and others are trying to do is to say, this is a liability. We want 

you to address it. We want you to fund it, but over a reasonable 

period of time. And that is 40 years. That is part of what we are 

trying to do. And so I just want to mention that up front. 

All right. Let us talk about—what would you all need—and let 

us start with David, if we could—some ways that you might suggest that we would allow the Postal Service to innovate and to be 

more creative and bring the revenues it needs to invest, realizing 

that all that growth in packages and parcels is coming out of technology, it is out of the internet. And there is just a lot of running 

room there, to make money. But go ahead, please. I talked too long. 

Mr. WILLIAMS. Thanks, Senator. There are a lot of levers that 

can be pulled that will result in revenue for the Postal Service that 

we have not fully exploited in the past, and we need to look at the 

implications of exploiting those. There are down sides too. But in 

my mind I think of things like returns management. A huge issue 

for e-commerce is the number of packages being returned. Those 

can best be managed at the point that they are returned, and the 

Postal Service could easily manage that. It is a perfectly situated 

adjacent space to the services we have. 

A lot of foreign shoppers would love to buy here but they cannot, 

because they do not have an address. We could provide virtual post 
28 

office boxes for them and it would help commerce and it would help 

the Postal Service. There are a lot of services we could do in connection with last-mile. We could provide presence services for the 

elderly and deliver nutrition to the elderly. There is a growing 

army of freelance workers that now have no office. They work at 

home. And that is only going to grow in the future. Better supporting them in this last-mile effort. Smart cities are going to bring 

with them smart systems, and the collection of data from the Internet of Things. There is something that these 227,000 vehicles and 

the 30,000 post offices could do to collect and do initial analysis for. 

We could do 3–D shippings, where we are not shipping anything. 

We are just shipping the software, and we actually produce it at 

the point that it is delivered. So there are an ocean of things that 

could be done, and this exactly how world posts have gone from losing money to profitability. 

Senator CARPER. Thank you so much. Those are great. Mr. Duncan? 

Mr. DUNCAN. I think it starts with technology. I am very optimistic about technology. I like the technology that we are using at 

the Postal Service today to allow you to see what your mail is going 

to be. I think that there are things that will build off of that platform. My colleague has mentioned some other things, the returns. 

I think this goes to partnerships, and it goes to the ability of us 

being able to flexibly act on an agile basis. One of the things that 

you can help us with is to make sure that we have the ability to 

act on these opportunities that come forward. 

Also look at our physical plant. I have been in many of the post 

office buildings, for example, the Farley Building in New York. I 

have been in one in Indianapolis. And I look at how little of the 

space is being used in some of those buildings. We have partnership opportunities there. 

Senator CARPER. All right. Thank you. Mr. Tucker? 

Mr. TUCKER. Yes. I know my colleague talked about informed delivery, the innovation side of what the Postal Service has been 

doing. When I first learned about informed delivery I mentioned it 

to my son, who is a millennial, and he was excited. He thought it 

was great that you could see 12 pieces of mail that is being delivered to your home, regardless of where you are. So I think if we 

could tell that story, get that out to the marketplace, that is going 

to be a driver of some revenues. 

But in my opening statement I talked about three things: small 

business, community organizations, Consumer Directed Community 

Support (CDCs), as well as nonprofits. Those are areas that I think 

we need to cultivate and farm, and possibly raise some significant 

revenue from those communities, and heretofore I am not sure if 

the Postal Service has been working with those revenue generators. 

Senator CARPER. All right. Thanks. Grateful that you are here. 

Mr. Chairman, thank you so much for holding this hearing for 

these nominees, and we look forward to working with you, to move 

forward. Thank you. 

Chairman JOHNSON. Thank you, Senator Carper. 

As is usually the case, my colleagues have done a good job answering the questions that you are really in a position to answer. 

My questions really have to deal with the detailed financial infor-
29 

1The information submitted by Mr. Williams appears in the Appendix on page 40. 

2The information submitted by Mr. Duncan appears in the Appendix on page 113. 

3The information submitted by Mr. Tucker appears in the Appendix on page 175. 

mation that you are going to have to gain access to, so we can actually go through a problem-solving process, develop the information, 

gather it, do a root cause analysis, define achievable goals. I mean, 

do that first. Then we will start working on exactly what the solution is. I think past attempts have just really not had adequate information. 

So, again, I appreciate your willingness to serve, and, again, I 

want to say thank you to your families for working with you on 

this. 

I do have a couple of magic words to read. The nominees have 

made financial disclosures and provided responses to biographical 

and pre-hearing questions submitted by the Committee. Without 

objection, this information will be made part of the hearing record,1

with the exception of financial data,2 which are on file and available for public inspection in the Committee offices.3

The hearing record will remain open until noon tomorrow, April 

19, for the submission of statements and questions for the record. 

This hearing is adjourned. 

[Whereupon, at 11:29 a.m., the Committee was adjourned.] 

(31) 

A P P E N D I X 
32 

U.S. Senate Committee on Homeland Security and Governmental Affairs 

Nominations of Calvin R. Tucker, David C. Williams, and Robert M. Duncan 

to be Governors, United States Postal Service 

Apri118, 2018 

Ranking Member Claire McCaskill 

Opening Statement 

Thank you Mr. Chainnan. I appreciate you holding this hearing and I want 

to thank the nominees for their willingness to serve. 

Today we convene to provide advice and consent for the President's 

nominees to be Governors of the United States Postal Service, an agency that 

touches nearly every American nearly every day. 

The Postal Service is the only delivery service reaching every address in 

America and is now growing by about 1.1 million addresses per year. USPS 

employs more than 500,000 people - including over 100,000 veterans- to deliver 

about 150 billion mail pieces each year, and has operations in all 50 states, the 

District of Columbia, and all U.S. Territories. 

Even as technological advances make the world feel smaller, mail delivery 

remains a critical part of the infrastructure that connects people across the country 

and the world. The Board of Governors of the U.S. Postal Service is comparable 

to a board of directors of a publicly held corporation and consists of nine governors 

appointed by the President and confinned by the Senate. Currently, the Board has 

no Senate confinned members and has lacked a quorum for four years. 
33 

Since 2016, the Board of Governors has operated under authority delegated 

to the Temporary Emergency Committee (TEC), which includes the Postmaster 

General and the Deputy Postmaster General. This situation is untenable. The 

Postal Service is in dire need of qualified Governors to help make critical decisions 

to address the financial and management challenges facing the agency. 

Since 2007, the USPS has experienced 11 consecutive years of net losses, 

totaling $65.5 billion. In 2012, USPS reached its statutory borrowing limit of $15 

billion, so it cannot borrow more money from the Treasury, and current law 

prevents USPS from accessing private financial markets. The financial problems 

result from a combination factors, including the steady decline in first-class mail 

and the requirement to prefund 100% of its retiree health liability. 

Due to its universal service obligation, the postal service is required to 

deliver to more addresses every year as more homes are built and new businesses 

start up. Fulfilling this mission is critical to ensure that Americans across the 

country, especially in rural areas, have regular access to the mail. Closing post 

offices and processing facilities can save the Postal Service money, but can 

adversely impact these communities. In addition, as more and more of the USPS 

workforce reach retirement age, it remains critical to ensure that the Postal Service 

also meets its financial obligations to its current and former employees. 

2 
34 

All of these obligations require the Postal Service to operate more efficiently 

than private sector competitors, but without the pricing flexibility enjoyed by the 

private sector. So, to summarize, the Postal Service has to deliver to more homes 

every year, with declining mail volumes, but can't close post offices, can't close 

processing plants, can't raise rates, and has a funding obligation imposed by 

Congress that no other public or private sector entity has to deal with. It's an 

impossible situation, and underscores the need for a full Board of Governors. 

The bipartisan Postal Reform Act of2018, which Sen. Carper introduced 

with Senator Heitkamp, Senator Moran and myself, seeks to balance the Postal 

Service's competing interests while providing the USPS with some short-term 

flexibility to make necessary capital investments. 

The USPS is facing significant challenges and needs a quorum of competent 

Board of Governors with the management skills and creativity to help USPS and 

Congress to navigate these issues. Unfortunately, while I am committed to moving 

these nominees as quickly as possible, assuming this committee determines that 

they are qualified, the Board will still lack a quorum even if all three are 

confirmed. This committee has a long history of pairing together nominees for the 

Board from both parties, and I am concerned that we are not doing so today. I 

hope that the President will quickly nominate a fourth person to the Board so that it 

will have a quorum to take action, and short of that, Mr. Chairman, I hope that you 

3 
35 

will work with me to quickly confirm a 51

h member to the Postal Regulatory 

Commission. I understand that there is a nominee under consideration for that 

position already. We should continue the long bipartisan tradition established by 

the Committee and ensure balance on the Board of Governors at this critical time. 

With respect to the nominees before us today, Mr. Williams, you served as 

Inspector General of the Postal Service under Presidents George W. Bush and 

Barack Obama. I have been pleased to work with you during my time in the 

Senate and hope to hear more about your goals if you transition to the Board of 

Governors. Mr. Tucker and Mr. Duncan, I am not as familiar with your work, but I 

look forward to learning more about how your experience would influence your 

roles as Governors, if confirmed. Frankly, I am concerned based on your policy 

questionnaire responses, that there might be a steep learning curve. I look forward 

to hearing more about what you have learned preparing for this hearing. 

Finally, while I remain committed to working with the Board of Governors 

and USPS management to address management and financial hurdles, that 

relationship cannot work if the Postal Service refuses to cooperate with 

congressional requests. For example, I continue to be concerned that the Postal 

Service is not maximizing its best, but most expensive asset- last mile deliveryin its negotiated service agreements with FedEx and UPS to provide "last mile" 

parcel delivery for those companies. Without the Postal Service, FedEx and UPS 

4 
36 

would be forced to find more expensive alternatives to deliver packages the last 

mile to places that are fundamentally unprofitable for these companies to deliver 

to. The Postal Service needs to capitalize on its network and make sure that it is 

maximizing its opportunities if it is going to be helping out its competitors and I 

have seen no evidence that that is the case. 

My request for the Postal Service's negotiated service agreements with UPS 

and FedEx has gone unfulfilled for years. This is basic oversight, and is part of 

this committee's fundamental responsibility. We handle sensitive business 

information all the time, and the fact that the Postal Service refuses to provide 

these agreements to me is extremely disappointing and frustrating. 

I look forward to hearing from the witnesses about improving USPS 

operations, and also about their commitment to ensuring that USPS cooperates 

with congressional requests. 

Thank you, Mr. Chairman. 

5 
37 

Prepared Statement of 

David C. Williams 

BEFORE THE SENATE HOMELAND SECURITY 

AND GOVERNMENTAL AFFAIRS COMMITIEE 

April18, 2018 

Chairman Johnson, Ranking Member McCaskill, and members of the 

Committee, thank you for considering my nomination. By way of 

background, my government experience began with military service in 

the Americallnfantry Division in Vietnam. I then joined the Secret 

Service. I served with the Department of Justice Organized Crime Strike 

Force in the Labor Department's Office of Inspector General and was 

part of President Reagan's Commission on Organized Crime. 

I went on to head GAO's Office of Special Investigations. I was then 

confirmed by the Senate to be the Inspector General at the Nuclear 

Regulatory Commission, the Social Security Administration and the 

Treasury. I was also the first IRS Inspector General and for a time was 

simultaneously the Acting Inspector General at HUD. Most recently I 

served as the Inspector General of the Postal Service for 13 years, until 

2016. 

As the Postal Service Inspector General, I conducted audits of program 

efficiency and effectiveness and worked closely with the outside 

auditor to review Postal Service financial statements. The office also 

conducted investigations to assure the integrity of the organization's 

actions and its business dealings. I am currently a Distinguished 

Professor at George Mason University. 
38 

I believe that the Postal Service has long served an important role in 

America as an economic engine for commerce and in supporting daily, 

the communications and logistics needs of Americans. 

I believe that the contribution of the Postal Service continues in this 

fast moving and disruptive era. We are certainly fortunate to live in 

these times, but they are continuously challenging and disorienting for 

citizens and commercial enterprises. The Postal Service and other 

American infrastructures are stabilizing constants enabling opportunity, 

while supporting citizens and businesses in this complex ecosphere. 

Each year, the Postal Service continues to protect the privacy and 

security of its 150 billion mail and parcel pieces, vigorously investigating 

thefts and abuses. The business model, since 1970, relies entirely on 

revenues from its product sales. The Postal Service provides the nation 

with an un-conflicted infrastructure, serving the public good. 

The Postal Service recently navigated an immense storm that included 

digital messaging diversion and an historic economic downturn, while 

serving as the sole participant in a major experiment to pre-fund its 

$400 billion benefit programs. 

As a result, there is rightfully a concern for the finances of the Postal 

Service, which are currently difficult for stakeholders to interpret and 

understand. Stakeholders often accuse one another of understating or 

exaggerating financial results. 

I believe it is essential for the financial condition to be more clearly 

presented, so that decision-makers can make important judgments and 

chart the future. A first step is to decompose Postal liabilities into 

component parts and to more clearly define the universal service 

obligation. 
39 

1 also believe that Congress could use the Postal Service to further 

support American citizens and position business enterprises for the 

opportunities and challenges of the digital global era. Today, I suspect 

that the Postal Service leaves much of its value to the nation on the 

table. 

The country is also facing the promise and the specter of coming 

megacities featuring smart systems and the Internet ofThings. New 

systems must integrate our neighborhoods with their cities, 

surrounding regions and to the world. Binding our coming nation may 

actually be more challenging in the near future, than in our past. 

The Postal Service's facilities and truck fleet could help collect and 

provide needed data for the Internet of Things and perhaps serve as 

platforms to increase internet broadband access. 

The digital age is still unfolding and the period ahead is likely to be 

challenging. The Postal Service's trusted presence in every American 

neighborhood could make it a candidate for new national mandates, 

should Congress direct. The neighborhood operations of the Postal 

Service often provide the most visible government presence in the daily 

lives of citizens. 

This is particularly true for America's rural areas, where the Postal 

Service may be vital to enabling the citizens of small towns and rural 

areas to enjoy the lives that we have intended for all Americans. 

If I am confirmed, I look forward to the challenges of this complex era 

and to working with you to respond to the needs of our nation. 

### 
40 

HSGAC BIOGRAPHICAL QUESTIONS FOR 

EXECUTIVE NOMINEES 

1. Basic Biogt•aphical Information REt>ACTED 

Please provide the following information. 

First Name 'Middle Name 

None 

Est 

1 
41 

Never Mo rrled 

0 

Flrst:Ninn\!. 

none 

Married 

Middle Name. 

Separated 

0 

2 

Annulled 

0 

Divorced 

0 

0 

Widowed 

0 

0 
42 

2. Education 

List all post-secondary schools attended. 

TI!le,.of School Dnt~,Bhgnn Date Ended 

Nnnt'ccot (vocational/technical/trade school, Scliool §£!!!!.!!.! 

Dille college/university/military college, (month/year) ! (montlilyearj (check ·'Degree' sctlhot! correspondence/distance/extension/online (check box if box if estimate) A'>i'llt·1led 

school) estimate) ( chook ''present" box 

if still i 

Southern University Est Est Present 1 Bache! June 

lllinois Seplcmbe.r June.l97l 0 0 

1964 1971 0 or 

University, 

Edwardsville 

University of University Sepiembe!' 1.?71 Rd Prtment Master August 

Illinois August 197~ o 0 

s 1975 

Degree 

and 

Advanc 

ed 

Certific 

ate in 

Educati 

on Fst Est P-resent 

0 0 0 

Est &t Present 

0 0 0 

3 
43 

3. Employment 

{A) List all of your employment activities, including unemployment and self-employment. 

If the employment activity was military duty, list separate employment activity periods to 

show each change of military duty station. Do not list employment before your 18th 

birthday unless to provide a minimum of two years of employment history. 

· 'Fypc;of Ellmloymctlt 

(Active Military Duty Station, 

National Guard/Reserve, 

USPHS Commissioned Corps, 

Other Federal employment, 

State Ooveminent (NonFederal Employment), Selfemployment, Unemployment, 

Federal Contractor, Non· 

Government Employment 

(excluding self-employment), 

Other 

Active Military 

Federal Employment 

Federal Employment 

Federal Employment 

Federal Employment 

Name ofYour 

Enjpiovi"'' 

Assiglied nu·ty 

Siatlon · 

U.S.Army 

United States Secret 

Service 

US Department of 

Labor 

General Accounting 

Office 

Nuclear Regulatory 

Commission 

See Attachment A for additional employment 

Most Recent 

Position 

Title/Rank 

Sergant E-5 

GS-12 Special 

Agent 

GS-15 

Director of 

Operations 

SBS Director 

oftheOffice 

of Special 

Investigations 

Inspector 

General PAS 

~ 

(City and 

State 

only) 

Vietnam 

and St. 

Louis, 

Mo. 

Chicago 

District 

of 

Columbi 

a 

District 

of 

Columbi 

a 

Rockvill 

e, 

Marylan 

d 

Date 

Employt!leJJt: 

Dognn 

(month/year) 

(check box if 

estimate) 

6!l6161 "" [] 

101l8n5 

10112!86 

ll/318? 

Est 

0 

Est 

D 

E.t 

0 

Date 

,. ElnilloYriient 

(month/year) ~ 

(check box if 

estimate) 

(check "present"~ box 

ifsUII 

employed) 

Jll7/70 

n 

10/11186 

ll/Ql/!i9 

?/l)l/95 

E•t 

Est 

0 

Est 

D 

ll.•t 

(B) List any advisory, consultative, honorary or other part-time service or positions with 

federal, state, or local governments, not listed elsewhere. 

Date Service Dale Set:Vice Elided 

Name of Government Name of Position ·Began (niorith/year) {check box 

Etititv (month/year) ifestimate) (check 

(chock box If "presenf' box if Still 

estimate) servin•). 

Government Vice Chairman E>l Est n 

Accountability and 2128/16 

Transparency Board '" 

(later the Trensparency 7n8/U 

Act Implementation 

Board). 

4 
44 

Est Est Present 

" a " 

Est Est Pres tilt 

" " c 

4. Potentia] Conflict of Interest 

(A) Describe any business relationship, dealing or financial transaction which you have had 

during the last 10 years, whether for yourself, on behalf of a client, or acting as an agent, 

that could in any way constitute or result in a possible conflict of interest in the position to 

which you have been nominated. 

None 

(B) Describe any activity during the past 10 years in which you have engaged for the 

purpose of directly or indirectly influencing the passage, defeat or modification of any. 

legislation or affecting the administration or execution of law or public policy, other than 

while in a federal government capacity. 

None 

5. Honors and Awards 

List all scholarships, fellowships, honorary degrees, civilian service citations, military 

medals, academic or professional honors, honorary society memberships and any other 

special recognition for outstanding service or achievement. 

US Bronze Star 

Vietnamese Medal of Honor First Class 

6. Memberships 

List all memberships that you have held in professional, social, business, fraternal, 

scholarly, civic, or charitable organizations in the last 10 years. 

None 

Unless relevant to your nomination, you do NOT need to include memberships in 

charitable organizations available to the public as a result of a tax deductible donation of 

$1,000 or less, Parent-Teacher Associations. or other organizations connected to schools 

attended by your children, athletic clubs or teams, automobile support organizations (such 

as AAA), discounts clubs (such as Groupon or Sam's Club), or affinity 

memberships/consumer clubs {such as frequent flyer memberships). 

Name of Organization Dnics .of Yocurlliicm bei~slilp 

(You may approximate.) 

5 

Positiiiri{s),Held 
45 

none 

7. Political Activity 

(A) Have you ever been a candidate for or been elected or appointed to a political office? 

No 

. Name of Office 

None 

ElcctcutA:ppolntiid/. 

Candidate Only 

Term of Service 

· (If applicabh•} 

(B) List any offices held in or services rendered to a political party or election committee 

during the last ten years that you have not listed elsewhere. 

6 
46 

Nnnie'oli'ririJCIElection Office/Services Rendered . Rcslionsllillltics Dates of 

Committee Service 

None 

(C) Itemize all individual political contributions 'or $200 or more that you have made in the 

past five years to any individual, campaign organization, ·political party, political action 

committee, or similar entity. Please list. each individual contribution and not the total 

amount contributed to the person or entity during the year. 

Nnnli!'of.<Rc~iplenr Amount Year.ofContribution · 

None 

7 
47 

8. Publications and Speeches 

(A) List the titles, publishers and dates of books, articles, reports or other published 

materials that you have written, including articles published on the Internet. Please 

provide the Committee with copies of all listed publications. In lieu of hard copies, 

electronic copies can be provided via e-:mail or other digital format. 

All reports and testimony that I issued were part of the records maintained by the 

Offices of Inspector General and General Accounting Office. I did not remove them 

at the time of my departure. They are on the websites of those government 

departments. I issued all reports on the websites for the period of my service at 

various Departmental Offices oflnspector General. The investigations are 

maintained in confidential file and the larger matters are part of the semi-annual 

reports to Congress. I estimate that there are several thousand of these including 60 

to 80 testimony documents. 

Title Publisher Ontefs).cit·Piiblicntitiil 

8 
48 

(B) List any formal speeches you have delivered during the last five years and provide 

the Committee with copies of those speeches relevant to the position for which you 

have been nominated. Include any testimony to Congress or any other legislative or 

administrative body. These items can be provided electronically via e-mail or other 

digital format. 

All testimonies and spee~:hes delivered rem11in 11t the GAO or Fedenl offices of 

Inspectors General where I served. They are on the websites of those Departments 

or part of their records. 

Tllle/Topic Place/Audience 

9 
49 

(C) List all speeches and testimony you have delivered in the past ten years, except for 

those the text of which you arc providing to the Committee. 

Title Place/Audience :Dntc{sxorsnccch 

Debate Panel on Governance Geneva, Switzerland September 2017 

Models for World Posts 

10 
50 

9. Criminal History 

Since (and including) your 181

b birthday, has any of the following happened? 

Havo you been issued a summons, citation, or ticket to appear in court in a criminal proceeding against you? 

(Exclude citations involving traffic Infractions where the fine was less than $300 and did not include alcohol or 

drugs.) No 

Have you been arrested by any police officer, sheriff, marshal or any other type of law enforcement official? No 

Have you been charged, convicted, or sentenced ofa crime in any court? No 

Have you been or are you currently on probation or parole? No 

Are you currently on trial or awaiting a trial on criminal charges? No 

To your knowledge, have you ever been tho suhject·or target of a federal, state or local criminal investigation? 

No 

If the answer to any oftbe questions above is yes, please answer the questions below for 

each criminal event (citation, arrest, investigation, etc.). If the event was an investigation, 

11 
51 

where the question below asks for Information about the offense, please offer information 

about the offense under investigation (if known). 

Does not apply 

A) Date of offense: 

a. Is this an estimate (Yes/No): 

B) Description of the specific nature ofthe offense: 

C) Did the offense involve any of the following? 

I) Domestic violence or a crime of violence (such as battery or· assault) against your child, dependent, 

cohabitant, spouse, former spouse, or someone with whom you share a child In common: Yes I No 

2) Firearms or explosives: Y cs I No 

3) Alcohol or drugs: Yes/ No 

D) Location where the offense occurred (city, county, state, zip code, country); 

E) Were you arrested, summoned, cited or did you receive a ticket to appear as a result of this offense by any 

police officer, sheriff, marshal or any other type of law enforcement official: Yes I No 

I) Name of the law enforcement.agency that arrested/cited/summoned you: 

2) Location ofthe law enforcement agency (city, county, state, zip code, country): 

F) As a result ofthls offense were you charged, convicted, currently awaiting trial, and/or ordered to appear in 

court in a criminal proceeding against you: Yes I No 

I) If yes, provide the name of the court and the location of the court (city, county, state, zip code, 

country): 

2) If yes, provide all the charges brought against you for this offense, and the outcome of each charged 

offense (such as found guilty, found not-guilty, charge dropped or"nolle pros," etc). If you were found 

guilty of or pleaded guilty to a lesser offense, Jist separately both the original charge and the lesser 

offense: 

3) If no, provide explanation: 

G) Were you sentenced as a result of this offense: Yes/ No 

H) Provide a description of the sentence: 

I) Were you sentenced to imprisonment for a term exceeding one year: Yes I No 

J) Were you incarcerated as a result of that sentence for not less than one year: Yes I No 

K) If the conviction resulted in imprisonment, provide the dates that you actually were incarcerated; 

12 
52 

L) If conviction resulted in probation or parole, provide the dates of probation or parole: 

M) Are you currently on trial, awaiting a trinl, or awaiting sentencing on criminal charges for this offense: Yes I 

No 

N) Provide explanation: 

13 
53 

10. Civil Litigation and Administrative or Legislative Proceedings. 

(A)Since (and including) your 18th birthday, have you been a party to any public record 

civil court action or administrative or legislative proceeding of any kind that resulted in (1) 

a finding of wrongdoing against you, or (2) a settlement agreement for you, or some other 

person or entity, to make a payment to settle allegations against you, or for you to take, or 

refrain from taking, some action. Do NOT include small claims proceedings. None 

Date Claim/Suit 

·~· 

~· Began 

None 

Court 

Name 

Nnmcfsl of 

Prlni:lpnl Parties 

Jnvolviidln 

Actlonil'i·occe(Jing. 

.. Nntilrc of Actlon/Procecdln~. Results of 

Acli~ding 

(B) In addition to those listed above, have you or any bus.iness of which you were an officer, 

director or owner ever been involved as a party of interest in any administrative agency 

proceeding or civil litigation? Please identify and provide details for any proceedings or 

civil litigation that involve actions taken or omitted by you, or alleged to have been taken'or 

omitted by you, while serving in your official capacity. 

Date Claim/Suit 

Was Filed 

Nianie(s),of 

PriliciPalPadi~ii :lnvo'lved.in . Nature of Action/Proceeding ResuliB of 

ACtlon/BI·ocecdlng Mtlofifl'rifeccillnfi 

14 
54 

I· 

(C) For responses to the previous question, please Identify and provide details for any 

proceedings or civil litigation that involve actions taken or omitted by you, or alleged to 

have been taken or omitted by you, while serving In your official capacity, 

11. Breach of Professional Ethics 

(A) Have you ever been disciplined or cited for a breach of ethics or unprofessional conduct 

by; or been the subject of a complaint to, any court, administrative agency, professional 

association, disciplinary committee, or other professional group? Exclude cases and 

proceedings already listed, 

Nilntcor Date Describe Cilation!DlsciJ!Ilnarx Aflcil£!lA§scrclatlliiit s;;it!Jt!gn/D:Iscipllnar~ Action/Complaint R.esults·ofDisdl!linan 

Cgmini!!cil/Grou11 &!lgn/Coml!laint Actloll/Comniohtt 

Issued/Initiated 

No 

(B) Have you ever been fll'ed from a job, quit a job after being told you would be fired, left 

a job by mutual agreement following charges or allegations of misconduct, left a job by 

mutual agreement following notice of unsatisfactory performance, or received a written 

warning, been officially reprimanded, suspended, or disciplined for misconduct In the 

workplace, such as violation of a security policy? no 

12. Tax Compliance 

(This information will not be published in the record of the hearing on your nomination, 

but it will be retained in the Committee's fdes and will be available for public Inspection.) 

REDACTED 
55 

REDACTED 

13. Lobbying 

In the past ten years, have you registered as a lobbyist? H so, please indicate the state, 

federal, or local bodies with which you have registered (e.g., House, Sennte, California 

Secretary of State), No 

14. Outside Positions 

xo See OGE Form 278. (If, for your nomination; you have completed an OGE Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check the box here to 

complete this section and then proceed to the next section.) 

For the preceding ten calendar yenrs and the current calendar year, report any positions 

held, whether compensated or not. Positions include but are not limited to those of an 

officer, director, trustee, general partner, proprietor, representative, employee, or 

consultant of any corporation, firm, partnership, or other business enterprise or any nonprofit organization or educational institution. Exclude positions with religious, social, 

frat.ernal, or political entities and those solely of an honorary nature. 

Tvpeof 

Oo·ganlzation 

{corporation, finn, Position Held Position Name of Addre.'IS of partnership, othor 

o.~gnriizatfon Orgonlznilou business emterprJs.e, Po•ltlon Held From Held To 

other non-profit (month/year) (month/year) 

organization, 

educational 

institution) 

17 
56 

15. Agreements or Arrangements 

xo See OGE Form 278. (If, for your nomination, you have completed an OGE Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check the box here to 

complete this section and then proceed to the next section.) 

As of the date of filing your OGE Form 278, report your agreements or arrangements for: 

(1) continuing participation in an employee benefit plan (e.g. pension, 401k, deferred 

compensation); (2) continuation of payment by a former employer (Including severance 

payments); (3) leaves of absence; and (4) future employment. 

Provide information regarding any agreements or arrangements you have concerning (1) 

future employment; (2) a leave of absence during your period of Government service; (3) 

continuation of payments by o former employer other than the United States Govemm~nt; 

and (4) continuing participation in an employee welfare or benefit plan maintained by a 

former employer other than United States Government retirement benefits. 

· Sfrifiis:n·nd 'Tei<iit'ii::of Anv 

Afli•cemenl'.1>f.Ai;rn•iliiififunt 

16. Additional Financial Data 

18 

Date 

(m~nth/year) 
57 

All information requested under this bending must be provided for yourself, your spouse, 

and your dependents. (This information will not be published in the record of the bearing 

on your nomination, but it will be retained in the Committee's files nod will be available for 

public inspection.) 

RED A ClEO 
REDACTED 

SIGNATURE AND DATE 

I hereby state that I have read the foregoing Statement on Bipgraphical and Financial Information and that the informa

provided therein is, to the best of my knowledge, current, accurate, and complete. 

Is/David C. Williams V~ 

U~ 

This November day of7, 2017 

25 
59 

Attachment A (employment continued) 

Type Employer Position Lac Beg Leave 

Federal Gov Social Security Admin Inspector General Bal- 9/3/95 6/20/98 

tlmore, 

MD 

PAS 

Federal Gov Dept of Treas Inspector General DC 6/21/98 5/3/99 

PAS 

Federal Gov Dept ofTreas Inspector General DC 5/4/99 8/24/02 

IRS PAS 

Federal Gov Dept of Transportation/ 8/25/02 8/19/03 

Dept of Homeland Security 

Transportation Security Ad Dep Asst Secretary DC 

Air Security 

Federal Gov U.S.Postal Service Inspector General Roslyn, 8/20/03 2/28/16 

VA 

SES 

Self-Employ Center for Performance Director, Center for Arllng- 3/1/16 Present 

And Integrity Performance and ton,Va 

Integrity 

State Gov George Mason University Director, Center for Arling- 3/1/16 Present 

Performance and ton,Va 

Integrity 
60 

UNITED STATES OFFICE OF 

GOVERNMENT ETHICS 

* 

The Honorable Ron Jolmson 

Chairman 

Committee on Homeland Security 

and Governmental Affairs 

United States Senate 

Washington, DC 20510 

Dear Mr. Chairman: 

REDACTED 

November 6, 2017 

Under the Ethics in Government Act of 1978, Presidential nominees requiring Senate 

confirmation who are not expected to serve in their Government positions for more than 60 days 

in a calendar year are not required to file public financial disclosure reports. The Act, as 

amended, however, contains a provision in section lOI(b) that allows the committee with 

jurisdiction to request any financial information it deems appropriate from the nominee. 

We understand that your committee desires to receive a financial disclosure report (OGE 

Form 278) from any Presidential nominee for a position on the Board of Governors of the United 

States Postal Service, along with a written opinion from this Office regarding any possible 

conflicts of interest. 

Therefore, I am forwarding a copy of the financial disclosure report of 

David C. Williams, who has been nominated by President Trump for the position of a Governor 

on the Board of Governors, United States Postal Service. Because the nominee is not expected 

to serve more than 60 days in any calendar year, the enclosed report and this letter are 

submitted to you in accordance with your committee's confirmation procedures and will be 

available for public inspection only to the extent provided by your practices. There is no 

authority under the Act for public release of this material by the executive branch. 

We have reviewed the report and have obtained advice from the agency concerning any 

possible conflict in light of its functions and the nominee's proposed duties. Also enclosed is an 

ethics agreement outlining the actions that the nominee will undertake to avoid conflicts of 

interest. Unless a date for compliance is indicated in the ethics agreement, the nominee must 

fully comply within three months of confirmation with any action specified in the ethics 

agreement. 

1201 NEW YORK AVENW•SUITE SOO•WASHINGTON DC•20005 * * * * 
61 

The Honorable Ron Johnson 

Page2 

Based thereon, we believe that this nominee is in compliance with applicable laws and 

regulations governing conflicts of interest. 

Enclosures REDACTED 

Sincerely, 

DAVID 

APOL 

David J. Apol 

Diailally signed by DAVID APOL 

' DN: c=US, O""U.S. Govemroenl, ou..Offic:a 

,orOovommcat Blhic.t, t:~~=DA Y1D APOL, 

M,'P _,2.19200300.100.1.l-9S4.9100298.18 to . Da!o: 2017.1l.0610:17:Sl -05'00' 

Acting Director and General Counsel 
62 

David C. Williams 

September 20, 2017 

Michael J. Elston 

Designated Agency Ethics Official 

Associate General Counsel and Chief Ethics & Compliance Officer 

U.S. Postal Service 

475 L'Enfant Plaza, SW 

Washington, DC 20260-1100 

Dear Mr. Elston: 

The purpose of this letter is to describe the steps that I will take to avoid any actual or 

apparent conflict of interest in the event that I am confirmed as a Member of the Board of 

Governors of the United States Postal Service. 

As required by 18 U.S.C. § 208(a), I will not participate personally and substantially in 

any particular matter in which I know that 1 have a financial interest directly and 

predictably affected by the matter, or in which I know that a person whose interests are 

imputed to me has a financial interest directly and predictably affected by the matter, 

unless I first obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(l), or qualify for a 

regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). I understand that the interests 

of the following persons are imputed to me: any spouse or minor child of mine; any 

general partner of a partnership in which I am a limited or general partner; any 

organization in which I serve as officer, director, trustee, general partner or employee; 

and any person or organization with which I am negotiating or have an arrangement 

concerning prospective employment. 

I will continue to serve as a Distinguished Professor at George Mason University and as 

the sole shareholder of the Center for Organizational Performance and Integrity, LLC. In 

my role as Governor, I will not participate personally and substantially in any particular 

matter that to my knowledge has a direct and predictable effect on the financial interests 

of George Mason University or the Center for Organizational Performance and Integrity, 

unless I first obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(l). I also will not 

participate personally and substantially in any particular matter involving specific parties 

in which I !mow that a client or former client of mine is a party or represents a party, for a 

period of one year after I last provided service to that client, unless I am authorized to 

participate in the matter, pursuant to 5 C.F.R. § 2635.502(d). 

I will retain my position as Trustee of the Constance Kraus Living Trust. I will not 

participate personally and substantially in any particular matter that to my !mow ledge has 

a direct and predictable effect on the financial interests of the Constance Kraus Living 

Trust, unless I first obtain a written waiver, pursuant to 18 U.S. C.§ 208(b)(l), or qualify 

for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). 
63 

I have been advised that I will likely serve on the Board of Governors for no more than 

60 days in any period of 365 consecutive days. Accordingly, I understand that I may not, 

under 18 U.S.C. §§ 203( c)(l) and 205(c)(l ), provide any representational services or act 

as agent or attorney for another in any pa1ticular matter involving specific parties in 

which I have participated personally and substantially as a government official. I also 

understand that I may not receive a share of any payment made for such representational 

services performed by another. I understand that additional requirements of 18 U.S.C. §§ 

203(c)(2) and 205(c)(2) will apply to me ifi serve for more than 60 days in any period of 

365 consecutive days. In that event, I will comply with all applicable requirements, and I 

will consult your office ifi have any questions about those requirements. 

I will meet in person before my first meeting of the board in order to complete the initial 

ethics briefing required under 5 C.P.R. § 2638.305. Within 90 days of my confirmation, I 

will document my compliance with this ethics agreement by notifying you in writing 

when I have completed the steps described in this ethics agreement. 

I have been advised that it is the Postal Service's position that an appearance of 

impropriety may be created by my holding any financial interests in its competitors, i.e., 

companies that deliver mailable matter outside the U.S. mails (~Federal Express, 

U1iited. Parcel Service, DHL, etc.). I agree that during my service as a member of the 

Board of Governors, I will not invest in any company that directly competes with the 

U.S. Postal Service(~ Federal Express, United Parcel Service, DHL, etc.). I will divest 

my interests in United Parcel Service (UPS) after my appointment but before I assume 

the duties of the position of Board member. I will not pmticipate personally and 

substantially in any particular matter that to my knowledge has a direct and predictable 

effect on the financial interests of this entity until I have divested it, unless I first obtain a 

written waiver, pursuant to 18 U.S.C. § 208(b)(l), or qualify for a regulatory exemption, 

pursuant to 18 U.S.C. § 208(b)(2). 

Finally, I will recuse myself from participation on a case-by-case basis in any particular 

matter involving specific parties in which I determine that a reasonable person with 

knowledge of the relevant facts would qi.1estion my impartiality in that matter, unless I 

am first authorized to participate, pursuant to 5 C.F.R. part 2635, subpart E. 

Sincerely, 

j)~t.vJl~ 

David C. Williams 
64 

U.S. Senate Committee on Homeland Security and Goverumental Affairs 

Pre-hearing Questionnaire 

For the Nomination of David Williams to be 

Governor of the United States Postal Service 

I. Nomination Process and Conflicts of Interest 

l. Did the President give you specific reasons why he nominated you to serve as a Governor 

ofthe United States Postal Service? 

No 

2. Were any conditions, express or implied, attached to your nomination? Jf so, please 

explain. 

There were none. 

3. Have you made any commitments with respect to the policies and principles you will 

attempt to implement as Governor'? If so, what are they, and to whom were the 

commitments made? 

I have not. 

4. Are you aware of any business relationship, dealing, or financial transaction that could 

result in a possible conflict of interest tor you or the appearance of a conflict of interest? 

If so, please explain what procedures you will use to recuse yourself or otherwise address 

the conflict. And if you will recuse yourself, explain how you will ensure your 

responsibilities are not affected by your recusal. 

My wife and I have already sold several small stock holdings at the reque.~t of the 

Postal General CounseL There are no other conflicts uf interest. 

U. Background of the Nominee 

5. What specific backgrow1d and experience affirmatively qualifies you to be a Govemor of 

the Postal Service? 

Postal workers have the same obligations and rights as government employees. [ 

have been a government employee in positions that range from entry level GS 7 to the top 

of theSES at level 6. 

I held the position of Inspector General for the Postal Service between 2003 and 

2016. 

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6. If confinned, how would your experience as Inspector General of the Postal Sen•ice 

prepare you to serve as a Govemor of the Postal Service? 

For 13 years I led the organization that examined the efficiency and effectiveness 

of all Postal programs, and conducted investigations to assure the integrity of Postal 

employees and contractors. During that period. I remained in close touch with the many 

postal stakeholders and Congressional Oversight Committees. During the 13 year period 

I engaged in the huge learning curve involving postal operations and related matters. 

7. If contlnned, what actions, if any, would you encourage the Board to take based on the 

knowledge and experience you acquired during your tenure as Inspector General of the 

Postal Service? 

I would work diligently to understand the cun·ent financial crisis by decomposing 

the liabilities into their respective elements, validating them and to assure that a plan was 

in place to manage and reduce the liabilities to levels below the assets that the Postal 

Service has in place. 

I would encourage the defining of the universal service obligation and tht: 

development ofthe optimal organi7.ational stmctures that would assure that the obligation 

be met. I would assure that the optimization model would maximize efficiency and be 

implemented in the most effective and cost saving manner possible. The models should 

be transparent to the point that Congress and the PRC could join in assuring the adequate 

capacity and efficiency to assure the Universal Service Obligation (USO) performance 

and sustainability. The optimization models would include post office, plant, delivery 

route networks and an administrative orgamzational structure providing mission support 

and operational command and control. 

I would assure that the organization is customer and user centric and that the 

Postal Service is in close touch with their changing needs and challenges. l would assure 

that the public receives our full support during this challenging era of innovation and 

disruption and that businesses are enabled for success by a dependable, fast, and 

supportive logistics support. 

8, Please describe: 

a. Your leadership and management style 

I try to constantly survey the operational and competitive environment that makes up 

the domain of the organization. I work with the organizational leadership, but also 

key stakeholders to identify internal and external challenges and identify the elements 

of their solution. I try to anticipate the implications of proposed solutions and 

attendant investments before rolling them out. 

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That approach requires a great deal of communicatiOn and consulting with 

stakeholders and those charged with the solution's development and implementation. 

I make every effort to assure that the strongest ideas emerge from meetings regardless 

of their origin and encourage a strong examination of contrarian thought ;md 

cautionary wamings. Once a matter is decided, however, 1 believe the solution needs 

to be implemented timely and well by capable and strong leaders. 

l.astly, I try to keep the current customers and recipient \lsers at the center of all 

organizational communications and systems. The Postal Service should be easy and 

convenient to use and open to the ideas and requests of stl\keholders. Every postal 

employee should understand that the mission of the Postal Service is to position 

American businesses for success and to support citizens through this challenging 

digital era of endless innovations and disruption of the familiar world they grew up 

in. 

b. Your experience managing personnel. 

I became a first level manager in 1980, then an office director in 1982 and an 

Inspector General with my own independent offices in 1989. I have engaged in all 

aspects of managing government employees including planning, leading change, 

dally operations, evaluating perfonnance, designing incentive and reward programs, 

and taking adverse action. 

c. What is the largest number of people that have worked under yo\t? 

I have supervised two organizations with over 1,000 employees. The Poswi!G had 

1,150 careerists and 300 contractors working on-sight daily. 

III. Role of a Governor of the United States Postal Service 

9. Please describe your view of the Postal Board of Governor's (Board) core mission and a 

Govemor's role in achieving that mission. 

l believe the Board ofGovemors' (BOG) core mission is to provide input and to 

review the Postal Service strategic direction. The BOG should be aware of all major 

events occurring and the outcome of major projects in progress. The BOG should assure 

that the organization is operdting efficiently and effectively and with the greatest 

integrity at all levels. The BOG should provide Congr~ss with its observations and in 

tum implement Congressional mandates. The BOG is required to make certain decisions 

and have the opportunity to provide advice and directions for important decisions made 

by the Postmaster General tmd other key executives. 

The BOG should assure that the Postal Service is fair and honest with all parties 

since it is held to the high standards of an American government entity. This sometimes 

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disadvantages the Postal Service as a business, but it is important to assure that we place 

our responsibility to the citizens above our own interests. 

Perhaps most importantly, the BOG should look out for the interests of the 

customers and recipient users of the postal service, remembering that they are the sole 

reason for our existence. 

10. If confirmed, what specitlc contributions do you hope to make during your time on the 

Board? 

[can provide insights and corporate knowledge of program perfonnance and 

historic problems. Also, I have an understanding of the financial crisis and how the 

postal service got there. I can discuss the impact of recent legislation on postal 

operations. Furthern1ore, I know the postal stakeholders. I am familiar with the employee 

groups, labor unions, and mail associations. Moreover, I have st1.1dicd the changing 

needs of businesses and the public for postal services. I have a good relationship with the 

private express carrier representatives. Also, J am aware of the postal service capacity to 

combat fraud and the misuse of mails. I know a number of international post 

representatives and staff of the UPU. Finally, I am aware of changing trends in the mail 

mix and volume. 

II. What do you believe are the functions and responsibilities of an individual Governor'? 

What in your training and experience demonstrates your qualifications to fulfill these 

functions and responsibilities? 

Individual governors support the entire Board, but also serve on Committees that 

examine the major areas of Posta! operations and policy. The Committees go into greater 

detail than the full board to understand various aspects of the Postal Service and select 

important developments and trends as well as proposals for action to the full Board. 

Additionally, the me111bcrs advise the Postmaster General on matters brought before them 

and are required to make certain decisions, rather than the Postmaster General and her 

executive sta!T. 

I think my qualitications include having presented to the BOG in the past and 

being present tbr a large number of their meetings. l run knowledgeable of operational 

and fiscal matters that the BOG Committees are tasked with understanding and providing 

advice for. I will have a deep understanding of integrity matters involving investigation 

and adjudication of misconduct and fraud. I have a good understanding of challenges and 

inherent risks associated with program areas within the Postal Service. 

12. What do you see as the main challenges facing the Postal Service? What do ym: believe 

should be the Board's top priorities in meeting those challenges? 

l believe the BOG should immerse itself immediately in tl1c fiscal crisis facing the 

Postal Service. The BOG should detennine if the Postal Service strategic plan and metric 

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aligned to the plan will take it in a direction that continuously improves its pertbnnancc 

and finances and addresses the current and emergent needs of Americans and American 

business enterprises. 

Defining and pricing the costs of the USO and modelling organizational networks 

that align to the USO are critically important to the development of a business model that 

is sustainable and compelling for customers. 

13. What do you believe should be the respective roles and functions of the Board and the 

Postal Service management? How do you believe the Board and management can best 

work together to meet the challenges facing the Postal Service'? 

Postal Service management must be responsible for operational and tactical 

matters. The BOG should have a role in the development of strategic direction and major 

policies. Also, the BOG should join the senior executive staff in reviewing capital 

investments. The BOG should advise in assuring that the Postal Service is customer 

centric and appropriately data driven as an organization. 

The BOG and Executive staff should communicate to Congress their observations 

and understanding of the financial condition and strategic direction of the Postal Service, 

along with other matters of urgency or that might involve legislative action to resolve. 

14. The Govemors are chosen to represent the public interest generally. As a Governor, how 

wilt you plan to interact with various stakeholders interested in postal issues and how can 

you effectively represent their interests? 

Conversations with Congress and with public interest groups are important to 

understanding concerns and ideas of the public and businesses throughout the nation. 

Postal Employee Associations and Labor organizations are important sources of 

infonnation on both postal employee and customer issues. Postal customer groups and 

business associations will provide essential information about the support requirements of 

enterprises to position themselves and compete in the current environment of disruption 

and rapid change. Postal leaders also are important sources of customer a11d user inputs. 

I 5. The Postal Accountability and Enhancement Act of 2006 (PAEA) requires that by the 

end 2015, at least four members of the Board have experience managing an organization 

of 50,000 employees or more. What are your views on this requirement for appointment 

to the Board of Governors? 

It is a good idea to assure that the Postmaster General and Congress have 

competent advisors and partners in decision-making. The size of the organizations 

identified, however, may eliminate a huge number of C!lndidates and may cause 

challenges for finding nominees. 

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Addition~tlly, since the requirement was put in place there have emerged very 

large commercial enterprises that could provide important advice on digital automation 

and working effectively with millennia! customers. Even the largest of these tirrns have 

very few employees and the requirement could deprive the Postal Service of the very 

experts it needs for its navigation through the remainder of the 21" Century. The voices 

of small businesses and entrepreneur advisors may also be muted by this requirement. 

The BOG has historically seen members who lacked expertise in any of these areas, and 

who do not have insights in the operation of govemment enterprises and the workings of 

government. 

IV. Policy Questions 

Postal Reform and Financial Issues 

16. The Postal Service continues to experience volume and revenue losses. The Postal 

Service ended Fiscal Year (FY) 2017 with a net loss of$2.7 billion. 

a. In your view, what is the Board's role in overseeing the Postal Service's efforts to 

improve its financial condition and to increase postal revenue and cut costs. while 

also meeting its universal service obligations and other statutory requirements? 

The BOG should require that universal service be defined and that the organization be 

optimized to assure that the Postal Service is able to assure Universal Service at the 

lowest possible cost. 

The Postal Service should stay in very close touch with the changing needs of 

Americans and the demand for services such as the frequency of delivery for mail and 

for parcels. 

The BOG should assure that the Postal Service be part oflhe solution to new 

American challenges such as smart cities and the coming mega-cities. The Postal 

Service should incentivize the consolidation of last mile delivery for private carriers 

and businesses that deliver their own goods. Consolidation would provide health, 

safety, environmental, and fuel use economies that could serve the nation. The Postal 

Service should enlarge its c.ollaboration with Congress on the appropriate levels of 

diversification of services to augment businesses going virtual and govemment 

agencies that no longer can provide field services. For instance, the Post Offices 

could validate identification of persons and busine$ses seeking government benefits, 

entitlements, grants, and loans. The Postal Service is best positioned to manage 

returns of purchases, since it is located at the point of delivery of the goods to be 

managed. 

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b. How does the Board's role differ from the role of the Postal Regulatory Commission 

(PRC) or the role of Congress? 

The BOG role is to assure the operation of the Postal Service and ensure that its 

strategic planning is guiding the organiz<~tion toward a sustainable fitturc that serves 

the changing needs of the public and business enterprises. 

The PRC assures that the Postal Service is performing its duty in providing timely 

and reasonably priced Universal Service. 

The Congress provides guidance and direction on the Postal Strategic plan, assures 

that Postal services are appropriate fbr its role and passes legislation that enable and 

limit the authority of the Postal Service. Congress also is able to gauge the needs and 

desires of its constituents for Postal services and provides funding for discounts to 

segments of the public and for the purchase Postal Services. 

17. Postal Service volumes and revenues associated with its letter mail and other market 

dominant products continue to decline, and First-Class Mail in particular is projected to 

significantly decline over the next decade. At the same time, the volume of packages 

and its competitive products have grown significantly in recent years. 

a. How can the Postal Service remain viable as letter mail volume declines'/ 

There ure areus of the country where mail volume has not decreased and should be 

more robustly promoted. As the novelty of internet advertising subsides, it is 

becoming clear that mail is dramatically more effective in triggering responses to 

advertising at a time when television advertising is also declining dramatically. Large 

segments of the population still demand billing and remittances be made through the 

mail. People find themselves erasing intcmet bills that are often intermingled with 

ads. Certain types of mail triggers the use of other mailings and shipments such as 

catalogue mailings and newspaper mailings. The Postal Service should recognize the 

value of such mail and inccntivize it. Having said that, traditional types of mail are 

declining and the network should be redesigned for the changing mail mix to assure 

greater efficiency. 

b. How can the Postal Service take advantage of the growing popularity of e-cammerce 

and package delivery? 

The Postal Service should strengthen its partnerships and coordinative efforts with 

private express carriers to consolidate last mile delivery. I have already discussed the 

societal benefits of consolidation earlier. A tremendous challenge for the ecommerce industry is managing reUJrns. The Postal Service should seek a role in 

managing returns since they are ideally located at the point of delivery. Also, the 

Postal Service should continue exploring the value of 7-day parcel delivery and 

separdte it further from door-to-door mail. The Postal Service should enlarge its 

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service to entrepreneurs, small businesses, new entrant.~. and to e-commerce to 

encourage their growth and provide them with a level playing field for competition. 

Until recently, parcel delivery only played a marginal role for the Postal Service. As 

mail volume has decreased and puree! delivery bas increased the Postal Service 

should assure that parcel service is fully integrated into its operations to assure that 

optimal economics and efficiencies are rebalanced. 

c. What new actions should the Postal Service take to maintain its viability and 

competitiveness in both its traditional lines of business und in potential growth areas? 

The Postal Service should continue its migration to u digital data driven operation that 

is customer centric. Also, tiJe Postal Service must become agile and responsive to the 

current rapidly changing world of constant technological disruption, global 

competitive risks, opportunities, and the innovations flowing from the digital age. All 

of these changes are challenging for citizens and businesses. The Postal Service 

should constantly be asking, how it can be supported by own network and 

international connections among world posts. The near-tenn development of smart 

cities und mega cities present extreme challenges that the Postal network could help 

mitigate. 

d. What do you believe are the proper limitations of the Postal Service with respect to 

competition with the private sector? 

l11e bias of the Postal Service should be in enabling the private sector to serve the 

public and to compete globally. Citizens often face challenges in obtaining certain 

goods and services whenever businesses have gone and withdrawn from a local 

presence. Where services have disappeared, communities may well peiition for post 

offices to serve as physical platfonns in their neighborhoods. If Congress assigns an 

expanded role to the Postal Service to provide additional government services or 

diversify its products in post offices, it should seek out private sector partners. As a 

last resort, the Postal Service could provide limited products and services on its own 

where revenues can help support universal service costs. 

c. How proactive should the Board be in identifying areas for the Postal Service to cut 

costs quickly so that it can cover its operating expenses? 

Traditionally the BOG has spent a great deal of its time and energy advising and 

overseeing cost cutting measures and revenue generating initiatives. I think that the 

role suggested in the question is an appropriate one for the BOG. Understanding and 

advising on pre-funding issues, consolidating and streamlining operations and 

reviewing optimization modelhng and efforts are ail appropriate roles for the BOG. 

f. What are the Board's role and responsibilities in identifying opportunities for the 

Postal Service to increase volume? 

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The BOG members should be qualified to provide valuable advice to the Postal 

Service because of their varied experience, geographic representation, and knowledge 

of business trends. The Postal Service should also be a stronger competitor in 

providing services to federal, state, and local govemments. 

18. What are your views on the "universal service obligation"? 

The sole reason for a Postal Service is to provide Universal Service to bind the 

nation, providing access and delivery to all Americans. If there is no need for Universal 

Service the private express companies are the world's best and are perfectly capable of 

delivering items where there is a profitable market and density of demand. 

The Universal Service Obligation (USO) does need to b<! defined and perhaps redefined 

as a result of digital messaging and ecommerce. If the USO is not defined, it cannot be 

priced and the postal network cannot be optimized, Pru1 of the definition Is detennining 

what American businesses and citizens want in this very changed age. Service 

perfonnance goals, service frequency levels and proximity of access are all important 

elements. 

19. How do you view current service standards and delivery frequency with respect to the 

obligation for service to every American? 

Service scores must assure the inclusion of the mail types that customers care 

most about, and must be regularly validated to explore concerns about the accuracy ofthc 

scoring that have arisen among recipients in the western states and rural areas. 

I do not believe that enough is known about what citizens and businesses value 

and want from mail service and delivery frequency. If more was known about these 

demand questions then we could assure that supply is adequate but not excessive and that 

the products and services being oflered are desired and profitable. 

20. The Government Accountability Office (GAO) again included the Posta! Service on its 

High-Risk List in 2017 because of its precarious financial condition. GAO added the 

Postal Service's financial condition on its high-risk list in 2009, after removing it in 2007, 

In your view, what should be the Postal Service's strategy for improving its financial 

condition and restructuring its business model to ensure its long-term viability, in 

addition to any factors that the Postal Service has annmmccd as part of its new business 

model? 

As I said ea.rlier, optimization modelling that flows from an updated and clearly 

defined USO would assure the nation of reasonable access and the provision of products 

and services, for which there is a demand. Continuing to consolidate last mile delivery 

and diversification of products and services, especially in rural and remote areas, also 

holds promise for savings and revenue enhancement. 

Senate Homeland Security and Governmental Affairs Committee Page9 
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The provision of the USO in sparsely populated areas has always caused the 

Postal Service to be responsible for supporting a network that includes many centers that 

do not operate at a profit. Businesses have already aggressively closed such centers, but 

they do not have a USO. 

The cost of USO has to be met by the government or pem1itting diversification of 

offerings. The monopolies over letter mail and access to the mailbox are no longer 

sufficient to support such loss centers. The mailbox access prohibitions are now more 

about the sanctity of mail than a provision that assures income. 

A review of the approach to pre-funding may also result in major savings. Since 

enacting the pre-funding requirement, no other government entity has joined the ctlort. 

The Postal Service can attribute much of its significant losses to contributing to prefunding contributions. The funds have now accumulated a $330 billion reservoir from 

postal operational revenues. 

21. The Postal Service has estimated its liabilities (including retiree pension and health 

benefits) to be over $484.8 billion while the combined assets are $363.1 billion, leaving 

an unfunded liability of$121.7 billion. How do you believe the Postal Service should 

address its liabilities? 

The liability needs to be better understood and validated in a transparent manner, 

so that Congress and other stakeholders can be part of the resolution. Obviously, prefunding would be part of the examination. The pre-funding projections and assumptions 

must be validated in light of a long history of large errors made by OPM and others. The 

impact of interest rate increases should be understood, since they have a major impact 

and the nation is just now coming out of an extended period of record low interest rates. 

Network optimization is being hampered by a lack of definition for USO. 

Defining USO and understanding demand could result in substantial further savings. 

Consolidation of missiim support offices, administrative centers, districts, and areas could 

also result in additional savings. 

Businesses today own far fewer assets than in the past. A comprehensive review 

of what the Postal Service should own and the mission support services it should operate 

could be of great value in cost cutting and improving operational efficiency and 

effectiveness. 

22. In recent years, postal management has indicated that the Postal Service has been 

financially unable to make the investments necessary to replace its aging vehicle fleet or 

make other necessary capital investments in order to remain viable and competitive in the 

coming years. What steps do you beliew the Board should take to prioritize key capital 

investments and allocate the resources necessary to make them? 

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The first step is to validate the finding that funding for capital investments is 

lacking. 

The BOG should then work with Postal management to detennine how much 

funding is available for the investments and to begin the purchase of vehicles to the 

extent that it is able. The current fleet of vehicles should be assessed to identify vehicles 

that can continue in use as the purchase of vehicles occurs over time. [fthcre is a gap in 

the availability of end of life vehicles, then elements of the new tleet will have to be 

financed with borrowing or lease arrangements. 

When the pre-fundmg amortization period is detennined in the new legislation, 

the new payments should take into consideration the concurrent need of the Postal 

Service to use the same funding stream to address this capital funding emergency. 

23. What short and long-term actions should Congress take to assist the Postal Service in 

achieving financial viability? 

Options include the restmcturing of the pre-funding requirement, that is already 

under way. The restructuring of payments will provide a more sustainable spending plan. 

Congress should require the Postal Service to develop an optimization plan for its 

network and execute the plan in a progressive, but orderly manner. Congress could 

pennit diversification of products offered in its retail outlets to transfonn post offices 

fi·om loss centers into profit centers. Congress could pay off the forgone debt it owes to 

the Postal Service. Also, Congress could tully fund the postal mandates U1at it has 

required, but not funded. Congress could determine that delivery trcquency of mail 

could be adjusted. 

Postal Ratl!s and New Products 

24. One of the core principles ofPAEA was to provide Postal Service customers, through the 

establishment of an inflation-based rate cap, with predictability and stability in pricing of 

the Postal Service's market dominant products. Pursuant to PAEA, the PRC completed a 

review of whether the rate cap met the criteria laid out by 39 U.S.C. § 3622, including 

stability, fairness, and generating adequate revenue to cover Postal Service costs. The 

PRC found that the cap did not meet all of these criteria, specifically the requirement that 

the cap did not allow for long-tem1 tlnancial stability of the Postal Service or for the 

Postal service to maintain high quality service standards. 

a. Do you believe the inflation-based rate cap has met the objectives and factor> laid out 

in 39 U.S.C. § 3622'? 

The early years ofPAEA were extremely useful. The legislation focused the Postal 

Service on right sizing and left no room to escape this responsibility. PAEA served as 

a surrogate for efficient market forces that do not exist in government departments or 

monopolies. USPS, of course, is both. The I 0-year review was a great idea, but may 

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have been delayed too long given the pace of change and given the unforeseen the 

economic downturn. 

The belt tightening went on for so long that stnlT and facility cuts proceeded at a 

reckless pace. Service began to fail in some areas of the country. As the CPI cap 

extended over a number of years the organization had to live on diminishing profit 

margins. An unanticipated consequence was that private express carriers also had to 

slash prices to match the prices of the USPS, causing them to operate on very thin 

protit margins as welL 

The CPI increase did not allow for any expenditures other than inflation and as I just 

mentioned that the Capital Investments were raided eventually to meet pre-funding 

contributions for as long as possible. 

Lastly, the inflation factor selected was CPI, which may not be suitable for a laborintensive organization or an organization that incurred inflation at the ECIIeveL Cl'l 

may also not be suitable for use in a declining industry such as the Postal Service with 

its loss of volume and expanding delivery points. 

In summary, 1 think PAEA was extremely beneficial in the early years, but may he 

remembered unfairly tor the difficulties that resulted in the later years. If price 

controls are to be continued, a vatiation of the CPI or the partial use of ECI may be 

worth considering. 

b. Which of these objectives or factors, if any, do you believe should be weighted above 

others? 

In my view, the tlnancial stability of the organization is the most important of the 

factors cited. 

25. The PRC also recently proposed adjusting the rate cap to allow the Postal Service to 

raise prices above inflation on market dominant products. In considering price increases, 

how should the Postal Service balance the need for additional revenue with the 

possibility that higher rates could further reduce mail volumes? 

I think that the principle consideration for the Postal Service is to position 

customers tbr success. We are nearing a time when many product~ cost more to ship 

than to produce. I also believe that last mile delivery should be encouraged for the sake 

of the country. Five trucks rumbling through residential neighborhoods to deliver five 

small items in oversized boxes is an unsafe and unstable solution. Postal price increases 

are not consistent with inccntivizing other carriers to use the Postal Service for last-mile 

delivery. 

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Regarding mail, I do not believe that there is a great dc;~l of elasticity risk from 

price increases. The reason for moderate increases is to keep prices reasonable as part of 

the Universal Service Obligation. 

It might be tempting to ask if price controls are as important as they once were. 

There are alternative channels and competition for nearly all postal products. Efficient 

market forces may now nearly be the only control needed to keep prices at their lowest 

levels possible. 

The principle upward pressure on prices may have resulted from pre-funding 

requirement that Congress is already reviewing. We may have reached the poim that if 

the Postal Service raises its prices, it could face extinction as do all other business 

enterprises. If that is true, I believe that efficient market forces serve as a much more 

desirable and natural environment than artificial price controls. 

26. The Postal Service has requested legisllltion authorizing greater tlexibility in offering 

non-postal products. 

a. Under what circumstances should the Postal Service be permitted to offer non-postal 

products? 

I believe that non-postal products should be offered where post offices operate at a 

Joss, yet are needed to provide reasonable access to citizens and businesses. 

I believe that the product and service ot1erings by post offices should be requested by 

the local commw1ity to the PRC for their review and that the request should include 

the reason why the products and services are needed by the community. 

The products/services should pay for their costs and contribute meeting the costs of 

the host post office's operation. 

I believe that if a private sector business partner could be found to join in offering 

non-postal products, a private sector partner should be used. 

1 believe that non-postal services that are part of the larger postal supply chain and are 

needed by businesses to enable their success should be allowable. For instance, I 

mentioned the need for returns management services by retailer that could be 

provided by the Postal Service. 

b. To what extent do you believe the Postal Service should rely on the provision of nonpostal products in its efforts to generate additional revenue? 

I believe that non-postal products should be partially relied upon to pay For the post 

oflice network necessary to maintain the USO. Accenture has reported that world 

posts now rely on non-mail sales for the majority of their profiL~. As I discussed 

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above, the use of the post offices as a platform for private sector pattners is the most 

desirable model for these offerings. 

c. How would you ensure the Postal Services does not compete unfairly with the private 

sector in selling non-postal products? 

The best way is to provide a marketplace retail platform for the private sector to offer 

its products. Many retail operations cannot survive with a brick and mortar network. 

The post office could provide the brick and mortar stores for multiple priv-ate firms 

that have gone virtual. 

27. How can the Postal Service take better advantage of its current authorities to make the 

mail more appealing and valuable to customers and attract additional mail volume? 

A program encouraging "Address hygiene" is important to making mail more valuable 

and less a nuisance for disinterested recipients. Rewarding companies that use innovative 

mail piece technologies that provide functionality across physical and virtual channels 

could make mail more effective and valuable. Efforts to restore the mail moment to 

households by encouraging pieces that recipients truly want and that excite them, such as 

mail containing product samples, catalogues, items that recipients ordered, and discounts. 

The Postal Service could also provide discounts for mail that creates further mail usage 

such as discount otTers with self-addressed envelopes or catalogues that stimulate 

shipping of goods. 

Tbe Postal Service should consider asking patrons what mail they would like to receive 

and that would appeal to their interests, improve their professional skills, or that enrich 

their lives. 

Additionally, the Postal Service should educate advertisers as to the results achievable 

with mail advertising. The Postal Service should also provide information to small 

businesses and free-lance workers as to the office support and shipping services that the 

postal service can provide them. 

Facility Closings and Service Changes 

28. What role should the Board have in decisions to realign postal retail and mail processing 

networks, including decisions to close specific facilities? 

I believe that the targets of opportunity for closings are now gone for the Postal 

Service. It needs a comprehensive model for the permanent state of its network and a plan 

to arrive at this steady state without causing unpleasant surprises and inconvenience 

among its customers and users. The models for the network should be transparent. The 

network model should receive the approval of the governors and the review of 

Congressional committees. 

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29. How can the Board ensure the Postal Service communicates with its customers and 

employees so that they arc aware of updated information on the consolidation process, as 

it becomes available? 

The Postal Service can appear secretive and reclusive at times. I have discovered 

that there is seldom a secret being protected. I think that the Postal Service would be 

better served by a climate of transparency and accountability and 1 will try to encourage 

that if confirmed. 

There is already a good level of coordinative meetings with the mailers, and the 

Postmaster General meets regularly with labor leaders and management groups. The 

BOG has regular public meetings. The number of meetings is already demanding, so if a 

problem remains, the solution may be for the meetings to become more conversational 

and interactive, rather than a briefing or broadcast model. I regularly see the Postmaster 

General and executives at Postal stakeholder events, so I know personally that they are 

active in attending them. The public meetings of the BOG could definitely be greatly 

improved and would go a long way to addressing the issues that you identified. 

30. The Postal Service is required to deliver mail to every address in the country, creating 

the need for retail postal locations in low-density counties and towns. How would you 

balance the Postal Service's universal service obligation and the need for rural counties 

to have reasonable access to the postal services when looking at ways to improve the 

Postal Service's financial condition? 

Assuring the same service to rural and remotely located residents are the reason 

that the Postal Service exists. We have world class private express carriers that can 

deliver mail to profitable areas. These same areas are often places where mail is still 

popular and where money orders are sold in large volume. If we are not willing to serve. 

all of America, I do not understand why there would he a Postal Service. 

We have many options for making post oftices profitable and for not risking loss 

of business by the closures. I cannot imagine a rationale for discussing the closing the 

post offices needed for the USO until all options are exhausted. 

31. According to GAO, approximately 41 percent of postal revenue comes from alternate 

retail channels such as the Postal Service website, automated postal centers, and contract 

postal units. Do you believe the Postal Service should increase the use of alternate retail 

channels, and if so, how should this be accomplished? 

I believe that customers appreciate the availability of automated postal centers 

and access to the postal website. Contract post oftices have worked properly but are 

sometimes not well placed. The outplacement of post oft1ces in stores operated by store 

employees has gone badly so tar. Employees often mischarged the rates and made 

disparaging remarks about the Postal Service. No business would tolerate such a 

condition and expect to survive. Further relocation of postal services away from post 

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offices needs to be explored, but all factors need to be on the table, including the sanctity 

ofthe mail. 

32. The Postal Service has, in the past, proposed both the elimination of Saturday delivery of 

some classes of mail and has nearly eliminated the overnight service standard. 

a. What is your opinion of the Postal Service's proposals to eliminate Saturday delivery 

of some classes of mail and lower certain service standards? 

J believe that we do not yet know enough about customer demand to make decisions 

regarding Saturday delivery or relaxed service standards. We need to survey the 

desires ofthe public and businesses to infom1 these decisians. I suspect that 

customers might be comfortable with relaxed service standards if they could depend 

on the certainty of the Postal Service meeting the new standards. Unfortunately, at the 

time the standards were relaxed, the l'ostal Service also experienced some serious 

service problems and the two issues were mixed together in the minds of customers. 

Jnforrnation about demand and what our users and customers want will inform us all 

about the road ahead. The infonnation is badly needed and must be gathered beti.1re 

we can go forward. 

l do feel contidenl that the puhlic wants and expects 7-day parcel delivery. It is an 

integral part of the digital era. 

b. What steps should the Postal Service take to ensure that any service changes it makes 

do not disproportionately harm any subset of postal customers and are consistent with 

the Postal Service's universal service obligation? 

I do not believe thul differing levels of service for Americans is an option that we 

should explore. Poor service to rural or remote places has never been such an 

unforgivable idea, as it is today. The Postal Service would not survive such a 

decision. 

c. How do you believe that changes to service affect customers' attitudes towards and 

use of the Postal Service? 

I think that we need to find out what America wants from its citizens and businesses. 

The Postal Service belongs to the nation and we need to ask citizens what they want 

from their Postal Service and if our rates for the services remain reasonable. 

d. How should the Postal Service balance tbe potential cost savings gained or potential 

revenue lost from changing service? 

This is another area that we seem to know much about. We do have historic cost and 

revenue numbers, but the environment is fast changing. We can calculate the cost 

savings with some accuracy, having experimented with it for some years now. The 

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revenue potential will be difficult to gauge until we have a comprehensive network 

model and final decisions on diversification of non-mail products. 

Workforce-Related Issues 

33. Since 1999, when the workforce peaked at over 900,000 employees, the Postal Service 

bas been reducing its workforce, including through hiring freezes, early retirements, 

incentive payments for some targeted attrition. lllld other ways. In the last two years, 

however, this trend is reversing and the number of Postal Service employees is 

increasing. Does the Postal Service have sufficient flexibility to adjust its workforce to 

its operational needs? If not, what additional flexibility is nee!led? 

I believe that they have. 

34. As an increasing number of postal execul!ves, managers, and supervisors are eligible to 

retire, how can the Board work with postal management to address these challenging 

succession, continuity, and associated cost issues? 

l understand that the Postal Service has a robust suceession planning process that 

was carefully overseen by the BOG. There are a number of postal managers eligtble, but 

they have not historically left in alarming numbers even after eligibility. The tum-over 

may be somewhat above desirable levels, but the opportunity also exists to recruit new 

talent with skills and knowledge that could be a good fit for the changing environment. 

35. In recent years, performance-based compensation systems bave been implemented for 

postal executives, as well as managers and supervisors. The success of these systems 

depends on the credibility of the perfom1ance measures. How can the Board ensure the 

credibility of the Postal Service's performance-based compensation systems? Do you 

have an opinion about perfommnce-bascd compensation? 

This is an area that has not gone well for the Postal Service. Poor metrics and 

poor tneasurement dominated the early years of the program. I do not know if things have 

improved. There were widespread feelings that the process was dominated by favoritism 

and the goal posts were clearly moved to correct faulty metric and goal results. The 

problems could have been resolved, but I will satisfy myself and advise you if issues 

remain. 

36. Please describe the kind of labor-management relationship you believe is most desimble 

at the Postal Service. 

I think that a relationship that is inclusive and conversational is most destrable, 

Processes thal feature maximum transparency and accountability are powerful tools as 

well. Mutual respect and routine communications could go a very long way to healing a 

storied legacy of confrontation and poor relations. 

Senate Homeland Security and Governmental Affairs Committee Page 17 
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Labor contract negotiations are by their nature arms-length and combative. To 

assure that the process does not undermine normal relations, I believe that it is essential 

that the leadership of the organization build strong bonds of respectful collegiality with 

the leadership of the labor organizations. A second channel of routine meetings while the 

negotiating teams are at work could help matters. 

The Postal Service has an admirable commitment to mission and that has caused 

some explosive situations between labor and management. This is understandable when 

the number one goal is delivering 150 billion pieces of mail, but stronger relations could 

have seen the organization through such trauma had they been in place. 

The Postal Service has been in a mode of crisis for a very long time and the 

pressures of those years have worn nerves pretty thin. I believe that the Postal Service has 

not always acknowledged its success and the magnitude of its accomplishments through 

the wol'st financial crisis since the great depression. Looking back, I think that many of us 

should have acknowledged the dedication and hard work of the employees and credited 

their impressive achievements. 

Accountability 

37. What do you believe should be the proper response ofthe Board if Postal Service 

management is not responsive to requests for infom1ation from Members of Congress? 

The Board should intervene to assure that Congress is advised ofthe reason for 

the delay and that the requested infmmation is provided as soon as possible. If the 

problem is repeated or chronic, the system for controlling requests and notification of 

failures to meet deadlines should be reviewed and assessed. 

38. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from the Postal Service Office 

of Inspector General (USPS OIG)? What do you believe should be the proper response 

of the Board to recommendations made by the USPS OIG ro Postal Service management? 

There has been an occasi011al history of failure to respond to requests for 

information and access to infonnation systems. They have been ultimately resolved, but 

have resulted in expensive delays. The problem is not out of control, but is greater than I 

have seen in other departments. There needs to be a system in place for rapid acceleration 

of incidents where data requests and access were denied. 

If management accepts recommendations they need to be taken in a timely 

manner. It is understandable that corrective actions may need to be integrated into other 

demands and the handling of emergencies. However, managers must be committed to 

continuous improvement and if corrective actions accumulate, it is the task of the 

executive management team and the BOG to understand why improvements are not 

occurring. Any organization needs to maintain capacity for continuous improvement. 

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39. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information trom the GAO? What do you 

believe should be the proper response of the Board to recommendations made by the 

GAO to Postal Service management? 

I would view GAO recommendations and IG recommendations as being 

interchangeable io their importance and handling. 

40. Protecting whistleblower confidentiality is of the utmost importance to this Committee. 

a. During your career in the federal government, how did you address whistleblower 

complaints? 

I assured that inquiries were handled immediately and that findings were acted upon 

promptly. I followed up to assure that corrective action had occmTed and whether the 

victim reported any indication of retaliation for having reported the problem. 

If the complaint happened in my office I would request that the Office of Special 

Counsel (OSC) handle the inquiry. Sometimes the OSC would detennine that the 

matter did not raise to a level meriting their attention, and I would request that 

another 010 handle the inquiry. 

b. How do you plan to implement policies within the Postal Service to encourage 

employees to bring constructive suggestions forward without the fear of reprisal? 

The Postal Service is not subject to provisions of the Whistlcblower Act, but at the 

recommendation of the IG, the Postal Service voluntarily subjected itself to the 

provisions. I believe that the program functions well, but I would want to assure that 

after the victim is made whole and our appreciation expressed, that we go beyond the 

Act to detenninc if management misconduct occurred rutd assure that appropriate 

action is taken. 

c, Do you commit without reservation to work to ensure that any whistleblower within 

the Postal Service does not face retaliation? 

Yes 

d. Do you commit without reservation to take all appropriate action if notified about 

potential whistleblower retaliation? 

Yes 

V. Relations with Congress 

41. Do you ugree without reservation to comply with any request or summons to appear and 

testify before any duly constituted committee of Congress if you ure confirmed? 

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Yes 

42. Do you agree without reservation to make any subordinate ofticial or employee available 

to appear and testify before, or provide information to, any duly constituted committee of 

Congress if you are confirmed? 

Yes 

43. Do you agree without reservation to comply fully, completely, and promptly to any 

request for documents, communications, or any other agency material or information 

from any duly constituted committee of the Congress if you are confirmed? 

Yes 

VI. Assistance 

44. Are these answers your own? Have you consulted with Postal Service management, 

employees, or any other interested parties? If so, please indicate which entities. 

They are my own answers. I have not consulted with anyone. 

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U.S. Senate Committee on Homeland Security and Governmental Affairs 

Minority 

Supplemental Pre-hearing Questionnaire 

For the Nomination of Dav1d Williams to be 

Governor of the United States Postal Service 

I. Nomination Process and Conflicts of Interest 

I. Has the President or his staff asked you to sign a confidentiality or non-disclosure 

agreement? 

No. 

2. Has the President of his staff asked you to pledge loyalty to the President or the 

Administration? 

No. 

3. During your tenure, have you asked any federal employee or potential hire to pledge 

loyalty to the President, Administration or any other go~·emment official? 

No. 

II. Background of Nominee 

4. Do you seek out dissenting views and how do you encourage constructive critical 

dialogue with subordinates? 

I value dissenting views for normal operations continuously, but more so when 

trying to solve a problem. If there are no dissenting views I try to recognize the blind spot 

in the process and ask everyone to imagine the negative implications and weaknesses of 

what we are about to do. Lastly, I make it a practice to adopt the strongest idea in the 

room regardless of who suggested it. 

5. Please give examples of times in your career when you disagreed with your superiors and 

aggressively advocated your position. Were you ever successful? 

I have investigated a number of superiors and peers within the organizations 

where I have worked. In three instances, the officials that I reported to stepped down 

immediately, following our investigation. 

6. Please list and describe examples of when you made politically difficult choices thut you 

thought were in the best interest of the country. 

Senate Homt'!land Security and Governmental Affairs Committee Page 22 
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I would cite the instance !listed above in response to this question. I was told 

implicitly or explicitly a number of times by Department Secretaries and their General 

Counsels not to investigate or audit matters or received their suggestions as to how the 

matters should be concluded. I rejected these inputs where they had no merit or were ~elfserving. which was often the case. 

7. What would you consider your greatest successes as a leader? 

I have taken a number of troubled organizations in crisis, restored them to health 

and then led them to become the best offices of their type in gove.mmcnt. I was asked to 

lead both the new TIGT A !G at the IRS and the HUD IG that was going through a crisis 

until another Inspector General could be found. During the period of9/ll both offtces 

were destroyed in the New York Trade Towers. While relocating the offices and restoring 

them to normal operations I organized over 100 IG investigators to join the FBI 

investigation of the incident. 

8, What would you consider your greatest failure as a leader? What lessons did you learn 

from that experience'? 

Sometimes, at the end of challenging or short tum-around tasks, 1 realize that 1 

micro-managed projects too much, rather than using the opportunity to develop the skills 

of the people assigned to perform the tasks. All too often, I mshed off to the next fire 

without thanking and recognizing the excellence of the staff. 

III. Role of a Governor of the United States Postal Service 

9. The Postal Service possess va~t physical assets (processing plants, equipment, vehicles, 

land, and buildings), much of which were transferred to the Postal Service from the 

fom1er Department of the Post Office and were paid for by taxpayers. As an essential part 

of the nation's supply chain, thcs~: assets can deliver about 154 billion mail items 

annually, nation-wide. 1 

Additionally, the Postal Service is at the center of the mailing and shipping 

industry, supporting about seven million jobs and about $1.4 trillion in revenues2 -

generating enom1ous value and wealth for mail-related industries, their workers, and the 

economy as a whole. The Postal Service holds about $27 billion in balance sheet assets.3 

1 United States Postal Service, Postal Facts 2017 (20 17) (https://about.usps.comiwho-weare/postal-tacts/postal facts20 J 7 -v2.pdt). 

2 Envelope Manufacturers Association Foundation. US Mailing Industry Jobs and Study 

(20 15) (tensionenvelope,com/siles/default/llles/20 1 5-mailing-industry-job-study.pdt). . 

3 United States Postal Regulatory Commission, United States Postal Service: 2017 

Report on Form 10-K (Nov 14, 2017) (https:l/about.usps.comlwho-we-are/finapcinlsi!Okreports/fy2017.pdt) .• 

Senate Homeland Security and Governmental Affairs Committee Page 23 
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The Postal Service 010 has estimated that the Postal Service's real estate portf(J!io asset 

value alone to have a market value of about $85 billiun.4 

If confirmed, how will you work to protect taxrayer and public ownership 

interests in the Postal Service's enonnous physical assets, financial holdings, and 

retirement fi.mds? How can the Postal Service realir.es and retain more of the value and 

profits its capital assets and operations generate? 

The process begins with a strong inventory and asset rrotection and 

accountability systetn. Preventive maintenance tlnd life-cycle approaches for assets from 

their acquisition to end oflife is essential. 

I also believe that it is valuable to survey asset ownership decisions to determine 

if they should be owned or whether it would be better to lease, contract, or subscribe for 

services. There are increasingly world posts that are trying to achieve an asset-free 

program. 

Lastly, an aggressive review of investments that are not working well must be 

made, and a straregy devised to mitigate their poor performance or rid the organization of 

them. Organizations sometimes tolerate poorly functioning assets to avoid the 

embarrassment of admitting that they were a poor investment. 

The pre-funding efforts have caused extreme cost cutting measures for the Postal 

Service. ln the early years ofthe combined effects of the CPI cap and pre-funding 

payments the effects were very good. The Postal Service focused on a long overdue 

streamlining program that was hugely successful. As the years went by under the 

program, the funds to maintain capital assets and purchase new replacement assets was 

raided until vehicles and buildings began to tall into disrepair. Going forward a plan is 

needed to restore a nom1al upkeep and replacement program is needed and overdue. 

The pre-fund now has a balance of about $330 billion. Additionally, properties at full 

market value have a signiiicant value as welL It would be useful to review the liabilities 

and assets to assure that the asset-! iability gap is accurate and then to decompose the 

liability into component parts and construct plans around each category to restore 

tlnancial health to the Postal Service. For instance, OP,M has a disturbing history of errors 

in projecting liabilities for the Postal Service. Also, it is useful to examine external 

factors, including the very likely increase in interest rates and project their Impact on 

liabilities such as the pension fund liability projections. 

4 United States Postal Service, Office oflnspector Generai,Be Careful About What You 

Assume (Feb. 16, 2015) (uspsoig.govlblogtbe-careful-what-you-assume). 

Senate Homeland Security and Governmental Affairs Committee Page 24 
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Lastly, I agree that we do have to seriously consider the actions we take that could 

adversely affect this large segment of the economy. The Postal Service is the long pole in 

the tent for this substantial industry and it docs not use tax dollars to operate. I disagree 

with the estimate of this industry supporting 7 million workers. I believe that the industry 

supports 7 million families. 

10. How will you work to promote public transparency and oversight of the Postal Service's 

Operations and Financial performance, as well as, its management actions and overall 

integrity? 

I believe that the Postal Service needs to be more transparent and accoumable. In 

acting more like a business, it is essential to remember thai we are stewards for the real 

owners of the Postal Service- the American people. There are moments when the Postal 

Service may be disadvantaged by the disclosure ofinfonnation, but the Postal Service is 

strong and in taking the long view, I believe that transparency will make its brand 

stronger. l also believe that like a number of traditional government organizations, there 

is a culture of confidentiality and secrecy at the Postal Service, even when matters are not 

actually secret. That level of uru1ecessary set:recy in government departments is not 

consistent with the behavior of a democratic nation. 

IV. Policy Questions 

Financial .Issues and Operations 

II. America's population, and with it, the total number of addresses, continues to grow. 

Despite the growth in addresses, all of which the Postal Service is still required to deliver 

mail to, mail volumes continue to decrease. That puts the Postal Service in the difficult 

position of expanding its network despite shrinking demand. How should the Board be 

involved in decisions to right-size postal retail and mail processing networks, including 

decisions to close specific fat:ilities? 

There are a growing number of addresses in the delivery network. It is right that 

we understand the cost implications of these additional responsibilities. We should also 

be keenly aware of the opportunity these new recipients represent. The real strength of 

the Postal Service is in the size of its user base. In the case of the new internet giants any 

chance to enlarge their user base is received us a huge welcome opportunity. 

I believe that the targets of opportunity for facility closings is now gone. The road 

ahead calls for an optimization plan that is designed to enable the USO. Additionally, the 

USO definition needs to be updated to fit the demands of a very changed world. I believe 

that proceeding with li.trther closings without such a plan is becoming increasingly 

reckless. 

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12. The 2006 Postal Accountability and Enhancement Act of 2006 required the Postal 

Service to pre fund 100% of its future retiree health benefits liability. Without the 

prcfunding requirement, the U.S. Postal Service would have produced a net profit every 

year from 2012 to 2016, roughly coinciding with the greater economic recovery from the 

Great Depression. Are you aware of any U.S. company that prefunds I 00% of any retiree 

benefit liability? Do you believe this is a sound accounting and business practice? If so, 

why? If not, why not'! 

I have found no such company or government agency. In addition, the agencies 

that have recommended pre-funding have not taken on the same effort themselves. There 

are numerous govemment departments that are in far greater jeopardy than the l'ostal 

Service and they have not been asked to pre-fund. l do not think that it is terribly likely 

that the United States will become the only nation in the world without a Postal Service. 

Such a decision would greatly disadvantage American businesses attempting to gain a 

global market share. 

Having said all that, the goal is a good one and enorn1ous progress has been matle. 

Businesses are required to include this liability in their financial statements, although 

often little is occurring to address the situation beyond disclosure. So the goal is a gnod 

one and represents the very best in leading practices. 1 am aware that Congress ifi 

attempting to address the extremely aggressive payments and adjust the amortization 

period for pre-funding. 

If Congress would like to continue to pursue pre-tunding I would recommend 

some additional considerations: 

• Validate the projection of the liability. OPM has repeatedly made huge ctTors. 

Also, the projection of the liability will be strongly affected by the increase in 

interest rates. Interest rates have been held very low to stimulate and stabilize 

the economy and will predictably retum to more historic levels as the 

economy returns to normal. Adjust the value of Postal assets to include the 

market value of its substantial properties. 

• Determine whether the future health cost liability can be reliably set. 

Businesses often conclude that technology and phannaceutical advances will 

have an unknown ctJect on the liability. Likewise, disease threats are 

impossible to gauge reliably. Life expectancy estimates are increasingly 

unreliable. As a result, while the pension liability can be forecast reliably, the 

health costs involve significant unknnwns and guess work. 

13. Too often, efforts to improve the Postal Service's t1nancial condition have been bomc by 

rural communities because post oftices in those communities are not as protltable as 

higher-trafficked urban post offices and delivery costs arc higher. Yet rural communities 

l.lfe, in many cases, more reliant on the Postal Service for delivering needed goods and 

services. What additional factors should be considered before the postal service makes 

decisions on cost-cutting efforts'! 

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The Postal Service needs a comprehensive model for the USO that assures access, 

proper sortation, transport, and delivery. I agree that rural post offices often operate at a 

loss rather than at a profit. I believe that diversitication of product offerings in the post 

office would provide revenue as well as products and services needed by communities. 

The additional revenues would likely assure that the post offices would show 

profitability. The Postal Service must assure that there is demand for any new products, 

Perhaps a request from the communities and approved by the PRC would assure that the 

impact of diversification would be a positive one. I also believe that toea! business 

partners providing offerings in the Postal Service would allow small firms the ability to 

remain in business at a time when stand-alone brick and mortar shops are struggling. 

14. In 2012, the Postal Service reduced delivery standards in order to consolidate a number 

of mail processing facilities. What do you think are the long-term financial costs and 

benefits to reducing the quality of the Postal Service's core products? 

Maintaining aggressive delivery standards can be expensive. That expense is 

partic\darly wasteful when the standards are not supported by demand for them. I think 

that the Postal Service needs to better understand the desires of citizens and businesses. 

Surveys should also explain the implications of aggressive service standards. 

Unfortunately, at exactly the same time that the Postal Service relaxed the 

standards it also experienced a lengthy period of failure in meeting its new standards 

across the board. That confluence prevented the new standards from being tested properly 

and resulted in understandable frustration and concern. The Postal Service had just 

finished an unprecedented reduction in its staff levels and service suffered even as 

overtime costs rose. 

Lastly, the Postal Service needs to examine the service delivery claims in rural 

areas and western states, where strong anecdotal evidence exists that the service levels 

being claimed arc not reliable. 

Postal Reform 

15. Some view the Postal Service as "a business" to serve paying customers: others sec it as 

a government services that must continue to be available to all citizens regardless of the 

financial profitability of operating in certain, more rural areas of the country. Which 

view should take priority? 

The reason for the Postal Service is the Universal Service Obligation. In the 

absence of that promise to nationwide delivery, the postal service is not needed since we 

have world class private express delivery firms. 

Senate Homeland Security and Governmental Affairs Committee Page 27 
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Rate,\' 

Additionally, the Postal Service must occasionally be disadvantaged over other 

private businesses, because the Postal Service belongs to the American people, who 

demand a postal service that is fair and trusted and is held to a very high standard. Those 

standards are also required to assure the sanctity of mail and parcel contents. 1 believe 

that those near-term disadvantages will be mote than made up in the long tem1. 

The Postal Service can and has learned a great deal from American private 

enterprise, but it is also an entity of the federal government with a commitment and 

promise of providing service to the American people and to providing a level playing 

t'ield for small businesses and new entrepreneurs attempting to compete. 

16. Since 2007, the Postal Service has reduced its career workforce by more than 200,000 

employees and closed 1, 716 post offices. The Postal Service is also limited in its ability 

to increase revenue through rate increases on first class mail. With these restrictions in 

place, what are the Postal Service's best alternatives to raise additional revenue'! Should 

it consider increasing prices on its parcel products'? 

The long-tenn prospects for a postal recovery lie in incentivizing last mile 

delivery, consolidate for carrier operations, and product/service diversitication for post 

offices. Price increases make continued last mile consolidation prospects a dim 

possibility. 

l believe that the targets of opportunity for post office closures are gone. A 

comprehensive plan for a postal network should assure that Universal Service is 

achieved. To do this, Universal Service must be defined and decisions around 

diversification must be made, so that the Postal Service can develop a long tenn 

optimized network. 

Customer Service 

17. The Postal Service sometimes is forced to temporarily close a retail postal facility, for 

example after a natural disaster. Yet many ofthcse facilities stay closed for as much as 5 

years or longer with little or no communication with the affected community. How can 

the Board ensure that the Postal Service improves communication with its customers? 

The Postal Service does need to provide timely and transparent infom1ation to the 

public and its business customers following natural disasters. The comprehensive 

network plan that I just discussed could be a guide to infonn decisions about rebuilding 

infrastructure destroyed and damaged during a disaster. 

The BOG should oversee such a transparent accountable communications plan. 

Oversight 

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18. The Postal Service has been operating without any independent Board Members for over 

a year and without a quomm since 2015. In the event this occurs in the future, what 

additional authorities should the Postma.~ter General, Deputy Postmaster General and 

Postal Regulatory Commission be given to ensure that the Postal Service can continue to 

operate effectively and efficiently in the interim? 

Clearer guidance is needed for an emergency committee regarding allowable 

decisions that can be made during the period of operation. 

The ability to make cbtmge and appointment actions could require Congressional 

notitkation and a waiting period could be considered. 

19. Recent reports by the USPS OIG have fow1d instances where practices and procedures by 

postal employees and management did not uphold the reliability and integrity of the 

Postal Service's performance data, such as scanning mail as delivered even if it was not. 

What steps should the Postal Service take to help ensure the integrity of its service 

performance system? 

Employees should be alerted as to the importance of accurate measures and 

receive fair warning that engaging in such practices will lead to dismissal. Criminal 

actions should also be considered, where the measures are tied to salary increases and 

bonuses. Lastly, the Postal Service should continuously search for better technology to 

gauge performance. 

20. As providers of vital services, many tbreign nations' postal operators are required to meet 

well defined universal service obligations. The U.S. Postal Service has few mandated, 

mensurable service standards. Are such standards needed in the U.S. and, if so, what 

steps would you take to being implementing them? 

As I discussed earlier, defining the USO with metrics and goals aligned to 

meeting the obligation would also help in this area. Further requiring notification to the 

PRC of service standard failures would be helpful. It is important that the mail and parcel 

types of greatest importance to customers should be part of the service standard 

measurement. 

Opioids 

2 L Criminals are using the Postal Service as a means to distribute illegal narcotics, including 

deadly opioids, posing enormous risks to American citizens. This has put not just the 

lives of the users at risk, but also the lives of postal workers. Yet the sanctity of mail 

against government inspection has been a hallmark of postal policy, requiring search 

warrants to allow law enforcement to open a mail item. Should law entbrcement be 

given wider latitude to open suspicious mail items? How might privacy concerns be 

balanced against the need to protect public and worker safety? 

Senate Homeland Security and Governmental Affairs Committee Page 29 
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The sanctity of mail sealed against unreasonable inspection is an important and 

historic feature of postal legislation. This very significant feature is coming into conflict 

wiih the important goal of addressing the large scale deadly opioid crisis. 

The Postal Service does not operate in foreign countries ihat have an important 

role in examining items entered into international mail streams. 

Firms and their responsible principals that are identified as drug smugglers should 

be baMed for life from using the mails. Nations that refuse to meet standards for 

inspection should not qualify for postal discounts, being required to pay full postage rates 

for all mail and parcel pieces, until they come into compliance. 

The Universal Postal Union should create an enforcement am1 that penalizes 

nations for failing to meet inspection standards that exist and are decided upon in the 

future. These postal measures must be an integrated part of a great~"!' plan involving 

sanctions against doctors and pharmacies engaged in reckless or abusive acts. 

Wages and Bene.fits 

22. Postal Service is having difficulty recruiting younger workers. What might be done to 

change ihe image of working for the Postal Service? 

PAEA's provisions have stopped the Postal Service from evolving into its future 

and integrating with the digital era. Revisiting those prohibitions and encouraging 

innovation should attract those considering future careers. The most critical change that 1 

can imagine is for the Postal Service to stop declaring ihat it is failing and that it is going 

our of business. Without that, other actions are ho!leless. 

I believe that hiring university and trade school students while they are still in 

school would be a useful strategy. Encouraging postal studies and research would also 

interest students in administrative, technical and leadership positions while stimulating 

new ideas for Postal Service usc. As the Postal Service becomes more technology rich 

and data driven additional young people will likely find the positions challenging and 

attractive. The clerk positions will become more interesting if diversification of product 

lines and enabling access to government services occurs. The Postal Service can 

participate more heavily in career days in cities and schools or can host career days. 

Young employees may also become interested in postal careers if ihe Postal Service 

conducts pilot projects to experiment with future innovations. 

V. Accountability 

23. What is your assessment of the oversight work performed by the USPS OlG over tl\e past 

decade'? What do you view as the greatest challenges facing the USPS OIG? 

Senate Homeland Security and Go\•ernmental Affairs Committee Page 30 
93 

The Postal Inspector General office is a very strong part of the Postal SeJVice and the 

Inspector General Community. The organization has a strong leadership and management 

cadre. Its digital analytics program to attack fraud and conduct continuous audit IS 

unparalleled. The digital analytics investment was paid for entirely with seized funds. 

The return on investment for the office is often the highest of the IG community 

as a result of acceptance and implementation of recommendations by the Postal Service. 

There are also a steady stream of insigl1tful findings and recommendations and major 

investigations. The Acting IG is very impressive and is among the best of the JG leaders, 

despite being new to the ranks of the community and holding only an acting position. 

Regarding challenges to effectiveness, the Postal Service has been reasonably 

cooperative over the period of time that I was the Inspector GeneraL There was 

considerable resistance to passing over jurisdiction from the Inspection Service to the 

Inspector General Office as directed in legislation, but it ultimately occurred. The most 

recent problem has been access to data systems so that the IG otTice could deploy data 

analytics to combat fraud and examine the etTiciency and effectiveness of programs in 

real time. 

The Organization was cooperative and very good about adopting cost saving 

measures identified by the IG qftice. I conducted two investigations of BOG members 

that resulted in their resignations and the results were in large part due to the strong 

actions of the Postmaster General and other BOG members. The Postma.~ter Generals 

also removed a substantial number of Vice Presidents following investigations and in my 

experience, that speaks very well of the orgtmization. 

24. During your career, has your conduct a.~ a federal employee ever been subject to an 

investigation or audit by an Inspector General, Office of Special Counsel, Equal 

Employment Opportunity Commission, Department of Justice, or any other federal 

investigative entity? If so, please describe the investigation or audit and its outcome. 

There have been instances of employees who were being disciplined raising 

counter charges and complaints. Those are the only instances that come close to being 

investigated. The subsequent inquiries found no fauli on my part and often the charges 

were withdrawn at the conclusion of the personnel action against the employee. I was 

never wamed, sanctioned, or asked to take remedial action of any sort. 

25. During your career as a federal employee, have you ever declined to implement 

recommendations made by the Office of Inspector General, the Office of Government 

Ethlcs, the Otflce of Special Counsel or the GAO? If so, please describe the 

recommendations that were made and your reasoning for nnt implementing them. 

I have not declined to implement recommendations given me by GAO, at the 

conclusion of peer reviews or reviews by other agencies. 

Senate Homeland Security and Governmental Affairs Committee Page 31 
94 

26. If confirmed, do you pledge to implement recommendations made by the USPS OlG, 

Office of Government Ethics, the Office of Special Counsel and the GAO? 

Yes 

VI. Relations with Congress and the Public 

27. If confirmed, how will you make certain that you will respond in a timely manner to 

Member requests for information? 

I will use Postal Service control systems with deadlines for correspondence and 

verbal requests. If the systems are deficient I will insist they be improved. T will ask to be 

briefed on any late requests. 

28. If confirmed, do you agree without reservation to reply to any reasonable request for 

information from the Ranking Member of any duly constituted committee of the 

Congress? 

Yes. 

29. If confirmed, do you agree without reservation to reply to any reasonable request for 

information from members of Congress? 

Yes. 

30. If confirmed, do you commit to take all reasonable steps to ensure that you and your 

agency comply with deadlines established for requested information? 

Yes. 

3 L If confim1ed, do you commit to protect subordinate officials or employees from reprisal 

or retaliation for any testimony, briefings or communications with members of Congress? 

Yes. 

32. lf confirmed, will you ensure that your staff will fully and promptly provide information 

and access to appropriate documents and officials in response to requests made by the 

GAO and the Congressional Research Service? 

Yes. 

33. If confirmed, wi!! you agree to work with representatives from this Committee and the 

GAO to promptly implement recommendations for improving the Postal Service's 

operations and effectiveness? 

Yes. 

Senate Homeland Security and Governmental Affairs Committee Page 32 
95 

34. If confirmed, will you direct your staff to fully ami promptly respond to Freedom of 

Information Act requests submitted by the American people? 

Yes. 

35. If confirmed, will you ensure that political appointees are not inappropriately involved in 

the review and release of Freedom of Information Act requests'/ 

Yes. 

36. If confirmed, will you direct your staff to adopt a presumption of openness where 

practical, including identifying documents that can and should be proactively released to 

the public without requiring a Freedom of Information Act request? 

Yes. 

37. If confirmed, will you keep this Committee apprised of new information if it materially 

impacts the accumcy of information your agency's officials have provided us? 

Yes. 

VII. Assistance 

38. Are these answers completely your own? If not, who has provided you with assistance 

They are my own and I did not receive advice or assistance. 

39. Have you consulted with the Postal Service management or any other interested parties'! 

If so, please indicate which entities. 

No, I have not. 

I, David Williams, hereby state that I have read the foregoing Pre-Hearing 

Questionnaire and Supplemental Questionnaire and that the information provided therein is, to 

the best of my knowledge, current, accurate, and complete. 

(Signature) 

Senate Homeland Security and Governmental Affairs Committee Page 33 
96 

This 3day of February, 2018 

Senate Homeland Security and Governmental Affairs Committee Page34 
97 

Senator Rand Paul 

Post-Hearing Questions for the Record 

Submitted to the Honorable David C. Williams 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April IS, 2018 

On the Universal Postal Union and the international mail system: 

As you may know, international mail is exchanged and delivered under the auspices of a treaty 

known as the Universal Postal Union (UPU). Because of its status as a treaty, the U.S. 

Department of State is the lead agency involved in negotiating the terms of the UPU. 

Nevertheless, the members of the Board of Governors of the U.S. Postal Service (USPS) should 

at a minimum be aware of several issues of growing concern involving the UPU and 

international mail pricing, trafficking and security. 

To that end, please answer the following as completely as possible. 

I. Are you aware that under the UPU, the USPS is required to deliver foreign packages at 

rates lower than those available to domestic shippers? 

Response: I am aware of these issues and find them disturbing. The Opioid issue alone 

represents a dire emergency. I have discussed the issue with private express company 

representatives, but would like to do so more formally and inclusively. I would like to 

include your staff to the degree that they are available and I believe Senator Jones should 

be involved as well. 

2. Are you aware that under the UPU, foreign postal services are not required to follow the 

same customs and security processes that are imposed on other international shippers? 

Response: There are law enforcement and Postal International Service Center actions 

that can be immediately undertaken to make the best of the situation and more substantial 

actions that should be undertaken that may require your help and that of others. I believe 

this should merit an emergency meeting of the UPU 

3. Are you aware of the Senate Permanent Subcommittee on Investigations (PSI) report1 on 

vulnerabilities in the international mail system that concluded that "the federal 

government's policies and procedures are inadequate to prevent the use of the 

international mail system to ship illegal synthetic opioids into the United States"? 

Response: Yes, I am aware and !find it concerning, and if confirmed it is an issue I want 

to examine and understand 

1 https://www .hsgac.senale. gov /subcomm ittees/investi gationsihearin gs/combatting-the-opioid-crisis-exploitingvulnerabilities~in-international-mail 
98 

4. Are you aware that that same Senate PSI report noted that, due to the customs and 

security exemptions under the UPU for foreign postal services, " ... 318,891,780 

packages entered the United States with no associated [advanced electronic data, or 

AED] on the sender's name and address, the recipient's name and address, or the contents 

of the package. With no AED, [Customs and Border Protection] was unable to target any 

of these packages for further inspection before they entered the United States." 

Response: Yes, 1 am aware and, if confirmed, will/oak into the matter. 

5. If confirmed, will you commit to investigating these concerns, and to working with the 

U.S. Department of State to correct underpricing of international mail? 

Response: 1 will undertake this immediately and 1 know it greatly concerns the other 

Governor nominees. Additionally 1 will work with the Department of State to encourage 

their action, as well. 

On assessing the USPS' unfunded liabilities: 

As I mentioned in the hearing, I believe the Committee would benefit from regular updates on 

the financial condition of the USPS, including (as mentioned by Mr. Williams in his testimony) 

"decomposing" the agency's long-term liabilities into their respective elements and developing a 

plan to improve the management of those liabilities. 

I. Would you be supportive of efforts by the USPS Board of Governors to provide regular 

updates on the financial condition of the USPS to the Committee? 

Response: Yes. 

On overhead and labor costs: 

As I noted in the hearing, and as the USPS notes in its December 31, 2017 Form I 0-Q filing2

, the 

USPS's "costs are heavily concentrated in wages and benefits for both current employees and 

retirees." 

I. In your opinion, what is the role of the USPS Board of Governors in reviewing the 

percentage of operating expenses that are attributable to labor? 

Response: 1 believe that it is the job oft he Board of Governors to examine this closely 

and 1 know that traditionally it has been a Board responsibility. I will also factor in the 

return on investment of the employee workforce. 

2. Would you be supportive of efforts by the USPS Board of Governors to review and 

conduct comparative analyses of the labor costs of the USPS relative to both its 

competitors as well as other public enterprises (such as transit systems, foreign posts, and 

quasi-government agencies such as the Tennessee Valley Authority)? 

2 http://about. usps.com/who-we-are/financials/financial-conditions-results-reports/fy20 18-g !.pdf 
99 

Response: A broad study would be useful, and I will also review some earlier work that 

has been done by the Postal Service and others. 

On pricing and organizational transparency: 

I. Would you be supportive of efforts by the USPS Board of Governors to review how 

USPS accounts for and allocates its costs among its various lines of business? 

Specifically, would you support analyses designed to determine whether and to what 

degree USPS "monopoly" products may be cross-subsidizing its competitive (parcel 

delivery) products? Would you support making the results of these analyses available to 

members of Congress and the public? 

Response: I do support such a study. Even though the Postal Regulatory Commission 

has an adjudicatory responsibility in such matters, it is our responsibility to assure that 

the data being submitted to them is accurate and sufficient to enable them to make 

judgments. We will assure that cross-subsidization and attribution are at the heart of our 

review. 

2. Where appropriate and if necessary, would you be willing to assist members of Congress 

in seeking additional information from the U.S. Postal Service on behalf of their 

constituents? 

Response: I am willing to assist in such inquiries. 
100 

Ranking Member Claire McCaskill 

Post-Hearing Questions for the Record 

Submitted to the Honorable David C. Williams 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April IS, 2018 

POST OFFICE CLOSINGS AND SERVICE CUTS 

Q: Do you support making cuts to USPS mail delivery service or the number of delivery 

days? Why or why not? 

Response: I believe that we need to serve the needs of Americans and respond to the 

market demands for our services. We need to more aggressively learn from our 

customers what they want and need, assuring that they understand the cost of such 

services. That may well result in an expansion of the services that are provided by our 

Post Offices and Delivery personnel. We have to be fiscally responsible. but most 

industries welcome new demand and we should respond to the services being requested 

by American enterprises and citizens. 

I think the first casualties of service cuts and revenue opportunities are likely to be in 

rural areas. I would like to imagine ways in which Post Offices increase their identities 

as community assets and have the freedom to respond to community needs. The Postal 

Service is the most visible symbol of the American government in communities and we 

need to strengthen our role in binding the nation through them. 

The Postal Service has a number of levers of action it may take increasing its revenue. If we instead cut service to Americans. particularly in rural areas and where such a drastic 

action is unnecessary, it brings into question the need for a Postal Service at all. 

Q: What impact do you think cutting mail delivery service or closing post offices will have 

on rural communities in particular? 

Response: If we do not serve everyone, at reasonable rates, we are no longer binding the 

nation and fulfilling our most basic reason for being. There are other subordinate 

objectives that are noble, but subordinate. 

I believe that the elephant in the room is pre-funding. I believe that we can continue and 

expand pre funding efforts and I have ideas about how to do that, but prefunding is a 

means, not an end, and not our reason for being. 

Thanks to PAEA, the USPS is now among the most well-funded benefit programs in the 

nation and world, with $330 billion set aside and earning large returns. The world posts 

are now largely showing profitability and the United States will unlikely be the only 
101 

nation without a link to the world postal services. Preparing for our funeral should not be 

the cause of our death or a reason to abandon American enterprises and citizens. 

The Postal Service has had to deliver to more addresses every year, but is handling less mail. 

The explosive growth in packages has not come close to filling the void left by declining first 

class mail volumes. 

Q: What steps can the Postal Service take to ensure that it meets its universal service 

obligation, especially in rural America, while also becoming financially self-supporting? 

Response: The Postal Service needs an optimization model for universal service that 

assures access, delivery and rapid, dependable service. 

It needs to examine its ability to make last-mile delivery a more valued customer 

experience and continue on its successful path of incentivizing last-mile consolidation. 

Post Offices should strive to become universal access points for government services and 

for businesses that have gone largely virtual, but still find it desirable to have some 

window services and identity validation available to customers. 

The prefunding efforts need to be set back on a successful pathway. That effort should 

begin with a validation of assumptions being made about the liability size and about 

postal assets available, if needed, to ensure that taxpayers will never be burdened. 

The impact of the return of normal interest rate levels should be judged. The amortization 

period should be reevaluated to avoid payments that represent rate shocks for American 

businesses. 

The CP I cap should be revisited to determine if a CP !-plus or a blended EC! cap would 

be a more stable measure. The EC! blend would factor in the cost of labor, rather than a 

total focus on commodities. We should continue to monitor the growing role of the 

competitive revenue streams. 

The Negotialed Service Agreement process has experienced explosive growth and there is 

need for a review study to assure fairness and optimal revenue streams are being 

achieved. 

ROLE OF THE USPS BOARD OF GOVERNORS 

Q: How do you view the postal service- as a service available to every constituent in the 

country or as a business that must be profitable despite obligations that no private 

company faces? 

Response: The role of the Postal Service is to serve as an unconjlicted operator of an 

infrastructure created to serve Americans and their business enterprises. I believe that 
102 

reasonable rates, convenient access and rapid dependable delivery are needed If the 

Postal Service cannot bind the nation to provide that to everyone, it has failed in its basic 

mission. 

Reasonable (lowest achievable) rates are a vital part in binding the nation by assuring 

inclusion. 

Financial viability is essential, unless the Congress wishes to change the course it took in 

creating the Postal Service as a government entity. PAEA achieved a great deal and 

should receive credit for boxing in the USPS to focus on its fiscal problems and difficult 

choices. P AEA now needs to be replaced by the current legislation under consideration. 

The Postal Service should be freed to go off to its future. The prefunding requirement, 

which achieved much, needs to be reevaluated for the road ahead. 

POSTAL SERVICE FINANCES 

Q: Are there provisions of the P AEA that Congress should consider changing to help 

improve the Postal Service's ongoing financial viability? 

Response: I have discussed the pre-funding provisions. I believe it time to take a look at 

how to achieve the rest of that huge and partially successful task. 

The CPI cap should be reviewed It also achieved a great deal, but may be destructive if 

it becomes an permanent feature of the landscape. 

Post Office Services should be responsive to the needs and wishes of the local 

communities. 

I believe the provisions that encourage profitability should be reviewed. The Postal 

infrastructure should provide the lowest possible costs achievable to Americans, not 

profits. 

I believe that the smaller sized Board of Governors, currently in the proposed legislation, 

is a helpful. Some further direction on how the Postal Service is to operate without a 

quorum would be helpful for those times in which the Postal Service must operate with an 

Emergency Committee. 

I would like ask that the Congress revisit the move of the Inspector General from the 

Board and PRC, to a Presidentially appointed position. The office is large and badly 

needed by the P RC and Board The loss or distancing of such a valued and useful office 

will prevent and slow some of the needed changes that are desired by stakeholders and 

the two J?overninr? bodies. 
103 

Q: Are you aware of the restructuring that the Postal Service has undergone recently, and if 

so, can you briefly describe some of its recent cost-cutting measures? 

Response: I have been gone for two years and look forward to becoming more aware of 

streamlining and optimization efforts. I am aware that service levels were beginning to 

suffer serious deterioration around 20I5-20I7 and that there has been an impressive 

recovery of the levels under the current Postmaster General. I am also aware that service 

level measures are under question and do not match experiences of customers. The 

integrity of the measures and the experiential gaps need to be understood. If problems 

are found, they must be rapidly address and mitigated. 

Q: Could you give a few examples of what additional restructuring of the Postal Service's 

business model you would suggest? 

I do not believe that the Postal Service should rely on its professional judgment in 

makingforther closures or expansions. Optimization modelling is now needed, although 

the rapid closure of "targets of opportunity" may have been useful in the early stages of 

the process. The optimization models should flow from the Universal Service Obligation 

to serve all citizens and bind the nation in a changing era. 

I think that further consolidation of mission support and command control elements may 

be possible through automation and digital analytics. 

POSTAL REFORM LEGISLATION 

Q: Where do you see the Postal Service in 10 or 20 years? 

Response: I am hopeful that the last-mile experience and services available to residents 

and work-at-home professionals is greatly increased. 

I would imagine that Post Offices may be tasked with becoming universal access centers 

for government services and commercial enterprises that find window services desirable 

for themselves and their customers 

Data analytics should free managers to engage in higher order duties and enable mission 

support and command and control structures to be reduced. 

Law enforcement efforts also should become much more data driven and tightly 

connected to the Internet of Things. 

Employees should be incentivized for their productivity and they should feel much more 

as though they are independent service providers. 

The Postal Service should closely watch the advance in technology to support and assist 

workers and to employ technologies that provide fast and flexible logistics services to 
104 

customers. Customers should be allowed to reprogram delivery destinations and 

schedule deliveries. I think smart mailboxes, cognified stamps and barcodes, and 

autonomous delivery vehicles should be closely studied. Comprehensive transportation 

grid mapping software is needed to exploit excess capacity opportunities. These grids 

should include trucking, air and trains. 

EXECUTIVE ORDER ON POSTAL REFORM 

Last week, the President issued an executive order establishing a commission to examine postal 

reform. The Treasury Secretary was selected to head the commission, but curiously, the Postal 

Service is not represented, nor are any stakeholders like unions, big mass mailers, or Members of 

Congress whose constituents are going to be directly affected by the Commission's findings. 

Q: If confirmed, how will you ensure that the Postal Service is adequately represented in the 

Commission's deliberations and conclusions? 

Response: Presidential commissions and working groups can be useful in bringingfresh 

ideas, and I was pleased to see a variety of backgrounds for participants. New ideas and 

perspectives are very welcome, particularly as the new Board of Governors arrive. The 

vulnerability of such study groups, particularly those with short deadlines, is that they 

will fall prey to the hidden agendas of their advisors. A second vulnerability is failing to 

expose draft recommendations to discussion and vetting before issuance. 

I do believe the Postal Service should be consulted and draft recommendations discussed, 

in case they are terrible ideas or fatally flawed and cause damaging harm. I do not know 

to what degree discussions are already occurring between the study group and the Postal 

Service, but will do all that I can to begin such communications. 

INTERNATIONAL MAIL 

We have a huge, complex problem right now with illicit opioid manufacturers in China using the 

Postal Service to deliver fentanyl in small packages to the U.S. The Postal Service currently 

receives about 1 million packages per day, mixed in with millions of pieces ofinternationalletter 

mail. By contrast, UPS handled 3 million international packages total in 2017. And the Postal 

Service does not control the data associated with these packages from start to finish the way that 

FedEx and UPS do. Making things even more difficult, the Postal Service is bound by treaty 

obligations that the express shippers do not have to deal with. All of which makes finding a 

solution to this problem extremely complicated. But it's one that we must solve. We need to 

find ways to improve data collection and screening capabilities. 

Q: If confirmed, will you take some time to get up to speed on the issue and present some 

formal recommendations and a path to start to resolve this issue? 

Response: I will take on the issue immediately and contact your office to communicate 

what I am learning. I know that other members share this concern and will also 
105 

communicate with them to understand their concerns and ideas and to share what we are 

learning. 

During your hearing, you stated that, "analyses were wrong and mistakes were made," in closing 

and consolidating processing facilities pursuant to the Post Plan. 

Q. Can you describe some ofthe mistakes you are referring to? 

Response: The Postal Service requires an assessment of the impact of facility closings. 

Particularly early on in the process, Postal Headquarters did not provide sufficient 

direction on how these assessments were to occur and many mistakes were made and 

factors neglected. Perhaps the most common failure was to consider added 

transportation costs incurred when a facility disappearedfrom the network Overtime 

costs were underestimated and the need for additional employees was not factored. 

Headquarters eventually provided templates and asked the JG to review most or all of the 

proposals along with postal managers. The template and the enhanced reviews have 

helped the process. 

Q. Are you aware of any changes to assumptions made for that effort so that these mistakes 

are not repeated again in the future? 

Response: The universal templates and improved management review helped and the JG 

review proved valuable. Perhaps a better communication plan about lessons learned 

would be of additional value. 
106 

Senator Tom Carper 

Post-Hearing Questions for the Record 

Submitted to the Honorable David C. Williams 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April18, 2018 

1. In 2017, the independent Postal Regulatory Commission (PRC) found that parcels contributed 

$7 billion more in revenue to the Postal Service than they cost to process deliver. In fact, 

according to PRC calculations, the share of institutional costs covered by competitive products 

has quadrupled over the last decade. This tells me that these products are not being 

subsidized, as has been suggested. Instead, parcels appear to be extremely profitable for the 

Postal Service and are helping defray the cost of universal mail service. I believe that growing 

parcel revenues helps to stabilize the Postal Service's finances and protects the Postal 

Service's ability to meet the obligation we place on it to deliver First Class Mail and other 

products to every address in the country. 

What are your views on this issue? Given the universal service obligation and the growing 

cost of Postal Service liabilities, what would you propose that the Postal Service do to make 

its package products more competitive and more profitable? 

Response: An essential element of the universal service obligation is reasonable 

costing for Postal products and services, to assure inclusion of citizens, and to 

position businesses to be competitive. As a result, I wouldfavor a low and 

reasonable cost structure. Americans are already having trouble making ends 

meet and businesses are struggling to be competitive internationally. That is 

coupled by the fact that increasingly products cost more to ship than to 

manufacture. 

The final consideration in keeping costs low is that, at a certain cost point, it is 

tempting for shippers to begin delivery services on their own. As the number of 

last mile shippers increase, we will experience increased traffic congestion, 

parades of trucks rolling through neighborhoods with children present, truck 

exhaust and unnecessary fuel use. Increasing numbers of delivery employees will 

be entering residential properties and onto their porches, and into offices, within 

reach of mailboxes and packages already delivered, all presenting security issues. 

On the other scale for the Postal Service is the need to continue to meet expenses 

and continue efforts to prefund benefit programs. Last year, as the exigency 

increase was withdrawn, the Postal Service failed to meet it expenses by 

$800,000,000 and that is likely to grow this year. The Postal Service again failed 

to contribute to funds being set aside to pay future benefits costs as well. The 

increase in parcel costs could result in additional revenues to meet this challenge. 

A large increase would likely have a serious elasticity response, however. It 

doesn't matter how much we make per shipment, if the shippers have fled. 
107 

With all those factors on the table, I believe the Postal Service needs to keep a 

close eye on the efficient market forces affecting both themselves and American 

business and citizens, as the USPS struggles to make up revenues lost from the 

withdrawal of the exigency increase and to understand how to renew its efforts to 

put aside monies for it future Benefit fund needs. 

In recent years parcel delivery services provided by the Postal Service has slowly 

but substantially improved and stabilized and now match the service provided by 

the private express companies. If the Postal Service is allowed to keep its prices 

competitive, I believe that this sector will continue to earn its share of revenue 

that is needed to balance the Postal budget. 

Sales from this sector are already increasing at a substantial/eve/. I think many 

changes are needed by the Postal Service, but perhaps this sector should be left to 

grow and remain competitive. 

2. The Postal Service's affordable delivery of packages is an economic lifeline to many 

Americans. I am concerned that any effort to make the Postal Service charge more for 

package delivery will harm, not help, small businesses and consumers, especially rural 

business and consumers who may not have access to any affordable alternatives. Can 

you speak to your commitment to ensuring rate stability and predictability when it comes 

to the Postal Service's package products? Do you agree it is essential to preserve 

universal access to affordable package delivery services? 

Response: The Postal Service was put into the parcel business in 1913 to halt the 

joint efforts of express companies and the Robber Barons, who were attempting to 

brutalize small businesses and entrepreneurs and.fix prices at predatory levels. 

Since then, the Postal Service has been intended as a public option for businesses 

and should keep its costs as reasonable as is achievable. 

A major sector of our economy is dependent on parcel shipping, including the 

huge ecommerce sector. A major increase in shipping costs would predictably 

have a serious negative impact on the ability of small businesses and innovative 

new enterprises to fulfill their vital role at this crucial time in the unfolding digital 

global era. 

3. As you know, the Board of Governors has been completely vacant since the end of2015 

and without a quorum since 2014. If confirmed, what steps will each of you take to 

evaluate the status of the Postal Service and the steps that need to be taken in the coming 

months to address both its short-term and long-term financial challenges? Given that no 

single part-time governor can possibly focus on everything, what will your main areas of 

interest be? 

Response: I would want to look at the performance metrics and goals that are set 

for each of the Postal functional areas to assure that they are comprehensive and 
108 

aggressive. If any areas are failing, I would want to assure that a plan is in place 

to restore proper performance levels. The Governors need to understand the 

operational and business climate in which the USPS must succeed. We also need 

to stay in close touch with stakeholders and customers to understand their current 

and coming needs and how the USPS can best enable them to succeed. The Board 

needs to work effectively with Congress to clearly understand the letter and intent 

of the direction that we receive from them and to communicate business 

intelligence and demand for services that the Postal Service is gathering from 

customers. Finally, we need to address the fiscal crisis by decomposing the 

problem and developing realistic plans to address each distinctive challenge 

successfully. 

4. As you know, the Board of Governors is charged with hiring and overseeing the work of 

the postmaster general and other senior postal managers. If confirmed, what steps will 

you take to evaluate the team in place today? Going forward, what qualities would you 

look for when looking to fill key positions? 

Response: I think we should look at the assignments and performance of the 

senior leadership team. This should include their plans for continuous 

improvement of their areas. I believe that the Postal Service performance metrics 

and goals will reveal a great deal. There is a surprisingly steep learning curve for 

executives at the Postal Service, which has made insularity a tempting option for 

filling vacancies. Yet outside expertise, especially in this era of rapid unfolding 

change, is essential. I would hope that a richer blend of outside talent and insider 

knowledge could be introduced that would provide a powerful combination for 

the road ahead. The Postal Service is very strong operationally, but predictably 

is finding fiscal, pricing and marketing challenges difficult. They have impressive 

resources in each of the areas, but an infusion of outside thinking and ideas might 

be hugely beneficial. I also think the Postal Service needs to greatly improve the 

manner in which outside firms with new ideas, products and services are received 

and evaluated. 
109 

Senator Doug Jones 

Post-Hearing Questions for the Record 

Submitted to Mr. David C. Williams 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

Aprill8, 2018 

Mr. Williams, our nation is facing a national illegal drug and opioid crisis of epidemic 

proportions. A great deal of these illegal drugs arrive in the United States through the mail. 

Currently, the Postal Service is exempt from the requirement that applies to private sector 

shipping companies that they obtain advance electronic data on packages imported into our 

country and provide that data to the Customs and Border Protection service. This data could 

allow the CBP to target high-risk shipments for screening and possible interdiction. 

In my home state of Alabama, law enforcement seized 8,200 grams of fentanyl in 2016 and 

2,677 grams in 2017. Most of that fentanyl was imported from China, according to law 

enforcement officials. 

In January of this year, Homeland Security officials at John F. Kennedy International Airport in 

New York managed to intercept one teddy bear loaded with 18 grams of fentanyl. That's enough 

to kill 36,000 people. Investigators figured out an Alabama man had ordered the fentanyl 

shipment on the dark web from overseas drug dealers using Bitcoin. The investigation involved 

Customs, the U.S. Postal Service Inspection Service, and Alabama law enforcement authorities. 

This is an excellent example of multiple agencies working to together to safeguard our 

communities. 

Having what they call "package level detail" information on all incoming packages would almost 

certainly help CBP intercept other such deadly shipments. 

Would you support eliminating this exemption and requiring the Postal Service to provide this 

important information to law enforcement? 

Response: One important element in addressing the opioid crisis in America is effective 

law enforcement. A major weapon for law enforcement has been the use of advanced 

shipment information for parcels being shipped, which enables law enforcement agencies 

to use digital analytics and network analysis software to track and act upon suspicious 

shipments of illegal drugs. 

As you correctly stated, the private express shipping companies have different 

requirementsfor package handling. The reason for that, presumably, is that express 

companies and their partners actually receive the parcels from the shippers in foreign 

countries. In the case oft he world posts, the country receiving the package is responsible 

for collecting the shipping data. Some currently collect and forward the data, some do 

not. Actually, China Post gathers quite a lot of data compared to most nations. The USPS 
110 

has no way of collecting the data first hand. since unlike the private express companies, it 

must rely on the postal service of the nation receiving the package. 

The international organization responsible for coordinating the efforts of the world posts 

is the Universal Postal Union. They have been slow and ineffective in requiring many 

needed changes including reforms in this area. 

That leaves the USPS with some fi'ustrations. but also some options that must be acted 

upon. 

The Postal Impector General and Postal Inspectors must engage in coordinated and 

seamless efforts to build and operate a world class digital analytics operation and 

response protocols. They in turn must operate very effectively with the Customs Service 

and other law enforcement agencies to interdict illegal shipments and aggressively 

prosecute both senders and receivers. These efforts will likely include operations 

directed against Dark Net sellers. 

The USPS International Service Centers must .forward all advanced data immediately to 

authorities to enable effective responses. 

Drugs are also being shipped through private express company parcels. The requirement 

for private express companies to use Customs Brokers should be reviewed to determine if 

there is a substantial value-added role being provided by the Brokers· services or 

whether there is a more effective use of those resources. 

The UPU needs to focus on this issue and take timely action. 

The bolt om line is that it is not acceptable that the United States be party to an 

agreement that is costing American lives andfailing to enable law e'!forcement agencies 

to snap the ;,pine ofopioid dealers. 
111 

Opening Statement of Robert M. Duncan 

Senate Homeland Security and Governmental Affairs Committee 

Confirmation Hearing, U.S. Postal Service Board of Governors 

April IS, 2018 

Mr. Chairman, Ranking Member McCaskill, and members of the Committee, thank you for 

holding this hearing to consider nominations to the U.S. Postal Service Board of Governors. I am 

Robert M. Duncan of Kentucky, and I am pleased to be joined today by nominees David 

Williams of Illinois and Calvin Tucker of Pennsylvania. I thank President Trump for having the 

confidence and trust to nominate me for this important job. I greatly appreciate the 

encouragement of my Kentucky Senators, Majority Leader McConnell and Senator Paul. 

As you know from the material submitted, I have been involved in government, business, and 

politics at all levels over my career. I believe that my experiences in the public, private, and 

nonprofit sectors make me uniquely qualified to serve as a Governor of the U.S. Postal Service 

Board. I have studied management and leadership in the different sectors and have an 

appreciation of the differences, similarities, and best practices in each. The Postal Service is an 

interesting blend of a public, private, and nonprofit organization. My service on the Tennessee 

Valley Authority Board helps me understand this unusual but important structure. I was selected 

a member of the President's Commission on Executive Exchange in 1989-1990 and worked at 

the White House in the Office of Public Liaison while studying public and private organizations. 

I have served in many other governmental positions at the local and state levels and currently 

serve as Chairman of the President's Commission on White House Fellowships. 

My work with nonprofit organizations include the Christian Appalachian Project, a large social 

service organization, chairing a state University board, and serving for many years as Chairman 

of Alice Lloyd College. In addition I was the Treasurer, General Counsel, and, finally, the 

Chairman of the Republican National Committee. 

As a community banker in Appalachia, I have worked with many small businesses and have an 

appreciation for the challenges and potential of rural America. My work with the American 

Coalition for Clean Coal Electricity gave me experience with CEO's of the largest railroads, 

utilities, and energy companies in the country. In addition to my undergraduate and law degrees, 

I have attended numerous Executive Education programs including programs at the Kennedy 

School of Government and the Harvard Business School. I believe I have both the practical and 

theoretical knowledge to be an effective member of the Postal Board of Governors. On a 

personal note, my grandfather Walter Duncan carried mail on horseback in rural east Tennessee 

and worked for one year as a mail sorter on a train. 
112 

I consider the Postal Service a public trust as every American citizen enjoys universal service. 

Referenced in the Constitution, the organization has served to bind America together for over 

two hundred years. The Postal Service is in daily contact with virtually every business and 

citizen. The local postal employees are the primary contact of most Americans with the federal 

government. 

My approach to leadership and governance is simple. It is my goal to include all stakeholders 

through aggressive outreach and communications. The working relationship with the Postal 

Service, Congress, and the Postal Regulatory Commission (PRC) is critical. More transparency 

in governing helps stakeholder's better plan for the future. An adequate staff is necessary for the 

Board to carry out its planning and oversight responsibilities. I believe the reconstituted Board 

will be strong and independent. 

As a new Board member, I do not begin with an agenda of specific recommendations. I support a 

thorough and transparent planning process. The basic business model must be examined 

carefully. I will learn as much as possible as soon as possible to understand the financial 

condition of the organization. 

The work of the Board will be particularly challenging as we begin our tenure. Many unresolved 

issues and pending legislation require flexibility in our approach. 

Issues that I expect to confront are: 

I. Governance structure: What are the relationships with Congress and the PRC? 

2. Universal service: What is the intent of Congress? 

3. Delivery frequency: What is the optimum number of days of service each week? 

4. Delivery Standards: What is reasonable and affordable? 

5. Change in Rates: What are the constraints? 

6. Rural Service: What is fair to all Americans? 

7. Opioids: What can be done to protect the mail, customers, and employees? 

If confirmed, I look forward to working with Congress, my colleagues, the leadership of the 

Postal Service, the Postal Regulatory Commission, and stakeholders. The Board's role is to 

establish policy, monitor results, and evaluate management. As a board I believe we can 

accomplish this mission. 

Thank you for your considering my nomination. I look forward to your questions. 
113 

HSGAC BIOGRAPHICAL QUESTIONS FOR 

EXECUTIVE NOMINEES 

1. Basic Biographical Information 

Please provide the following information. 

Robert 

R 

M 

M 

Duncan 

Duncan 

Sr. 

1 

REDACTED 
114 

Married 

X 

Separated 

2 

Annulled Divori'ed 

D 

Widowed 

D 
115 

2. Education 

List all post-secondary schools attended. 

3 
116 

3. Employment 

(A) List all of your employment activities, including unemployment and self-employment. 

If the employment activity was military duty, list separate employment activity periods to 

show each change of military duty station. Do not list emplorment before your 18th 

birthday unless to provide a minimum of two years of employment history. 

Inez 

KY 

President Washington 09/2012 and CEO DC 

Republican National Cbahman Washington 

Committee and CEO DC 01/2007 

Tennessee Valley Director Knoxvllle 03/2006 1N 

(B) List any advisory, consultative, honorary or other part-time service or positions with 

federal, state, or locai governments, not listed elsewhere. 

4 
117 

4. Potential Conflict oflnterest 

(A) Describe any business relationship, dealing or fmancial transaction which you have had 

during the last 10 years, whether for yourself, on behalf of a client, or acting as an agent, 

that could in ariy way constitute or result in a ppssible conflict of interest in the position to 

which you have been nominated. m_~~!fii~Jr@.B 

(B) Describe any activity during the past 10 years in which you have engaged for the 

purpose of directly or indirectly influencing the passage, defeat or modification of any 

legislation or affecting the administration or execution oflaw or public policy, other than 

while in a federal government capacity. f!ill~'ff@'PJ!iJ~ 

5. Honors and Awards 

List all scholarships, fellowships, honorary degrees, civilian service citations, military 

medals, academic or professional honors, honorary society memberships and any other 

special recognition for outstanding service or achievements. m~\!~~~ 

6. Memberships 

List all memberships that you have held in professional, social, business, fraternal, 

scholarly, civic, or charitable organizations in the last 10 years. 

Unless relevant to your nomination, you do NOT need to include memberships in 

charitable organizations available to the publie as a result of a tax deductible donation of 

$1,000 or less, Parent-Teacher Associations or other organizations connected to schools 

attended by your children, athletic clubs or teams, automobile support organizations (such 

as AAA), discounts clubs (such as Groupon or Sam's Club), or affmity 

memberships/consumer clubs (such as frequent flyer memberships). 

5 
118 

7. Political Activity 

~u ever been a candidate for or been elected or appointed to a political office? 

(B) List any offices held in or services rendered to a political party or election committee 

during the last ten years that you have not listed elsewhere. 

6 
119 

Republican National Member Governance and Oversight 1996 2009 

Committee Executive 

Committee 

Republican National Chairman Governance and Oversight 2016 

Conventions Credential 

Committee 

Republican National Member Govemance and Overnight 2004 

Conventions Rules 

Committee 

Republican National Delegate at Large 1972, 

Conventions 1976,1992, 

1996,2000, 

2004,2008, 

2012,2016 

Republican Party of Member Governance and Oversight 1992 - Current 

Kentucky State Central 

Committee 

Republican Party of Member Governance and Oversight 1992 - Current 

Kentucky Executive 

Committee 

Republican Party of Chainnan Governance and Oversight 1996- Current 

Kentucky Budget 

Committee 

Jim Bunning for Senate Chainnan Daily management and strategy 1998 

Data Trust and GOP Chairman Governance and Oversight 2011-2012 

Data Trust Dorector 20 11-present 

American Crossroads Member Governance and Oversight 2010-Current 

2010-2012, 

Chairman 2016 

Senate Leadership Fund Member Governance and Oversight 2016-Current 

Chairman 20 17-Cut;ent 

(C) Itemize all mdividual political contributions of $200 or more that you have made in the 

past five years to any individual, campaign organization, political party, political action 

committee, or similar entity. Please list each individual contribution and not the total 

amount contributed to the person or entity during the year. · 

7 
120 

8. Publications and Speeches 

(A) List the titles, publishers and dates of books, articles, reports or other published 

materials that you have written, including articles published on the Internet. Please provide 

the Committee with copies of all listed publications. In lieu of hard copies, electronic copies 

can be provided via e-mail or other digital fonnat. 

(G.O.P. Myopia on Coal) 

8 
121 

Letter to the Editor (New EPA regulations) September 2013 

New EPA Rules Will Kill Clean Wall Street Journal October29, 2013 

Coal 

It is possible that other articles, 

reports or published marerials were 

issued under my name while I 

served as Chainnan of the . 

Republican National Committee and 

the American Coalition for Clean 

Coal Electricity. Ibave included the 

material contained in my files: 

(B) List any formal speeches you have delivered during the last five years and provide the 

Committee with copies of those speeches relevant to the position for which you have been 

nominated. Include any testimony to Congress or any other legislative or administrative 

body. These items can be provided electronically via e-mail or other digital format. 

AAR (Railroad 

9 
122 

Annual Meeting Tri-State Generation and 4-3-13 

Transmission Association 

Remarks National Coundl of Coal Lessors 4-15-13 

Remarks Contractor/Supplier Meeting of 4-17-13 

lhe Lignite Energy Council 

Remarks Politico Polley Briellng 7-13-13 

Remarks as President and CEO of NARUC Subcommittee on Clean 7-26-13 

ACCCE Coal Breakfast 

Huntington Chamber of Nlnlh Annual Energy & Natural 11-12-13 

Commerce Resources 

Remarks Real Clear Polities' Forum 1-15-14 

Remarks Ohio Rural Electric Cooperative 2-11-14 

Trustees Conference 

Remarks as President and CEO of Colorado Mining Association 4-15-14 

ACCCE 

Remarks West Virginia Land & Mineral 5-14-14 

Owners Association 

Remarks as President and CEO of Kentucky Chamber of Commerce 7-22-14 

ACCCE 

Remarks as President and CEO of Paducah Chamber of Commerce 9-11-14 

ACCCE 

Remarks SME Annual Conference and 2-2.3-15 

Expo 

Remarks as President and CEO of Pennsylvania Coal Alliance 3-28-15 

ACCCE 

Remarks U.S. Court of Appeals Press 4-16-15 

Conference 

Remarks- Annual Meeting Associated Electric Cooperative, 6-2-15 

Inc. 

Remarks RAGA Policy Panel 8-3-15 

10 
123 

(C) List all speeches and testimony you have delivered in the past ten years, except for those the 

text of which you are providing to the Committee. Cam 

1·20-04 

History of Rogers Scholars 6-30-06 

Campaign Speech 

1008/Natlonal Press Club 

11 
124 

Meaning and Adventure in Polities Forsyth County Day l-l-09 

Citizens of the Century Program Johnson County Joint Ovic Club 6-23-09 

Meeting/Paintsville, KY 

The Five People I Met at Cumberland University of the Cnmberlands 10-10-09 

College Alumni Dinner/Williamsburg, 

KY 

So You WBDt to .Run for Office .RPK Party Training/Owensboro, 11-21-09 

KY 

How to Conduct an Effective Meeting Big Sandy Technical College 3-2-10 

Women's Leadership Seminar 

Leadership Development Kentucky Agriculture 7-20-10 

Leadership 

Why I Am a .Republican KFRW Executive Speech 8-20.10 

A Life of Meaning and Adventure I,eadershlp Tri-State Honors 2-22-11 

Nelda Borton·CoWngs/Corbln, 

KY · 

Possibilities of Your Future Sheldon Qark High School 5-2-11 

Seniors 

History of Rogers Scholars Rogers Scholars Graduation 8-15-11 

lOll 

9. Criminal History 

Sinee (and induding) your 181

h birthday, has any of the following happened? 

Rave you been issued a swnmons, citation, or ticket to appear in court in a criminal proeeeding against you? 

(Exclude citations involving traffic inftactions where tbe tine was less than $300 and did not include alcohol or 

drugs.)..-~-

Have you been anested by any police officer, sheriff, marshal or any other type of law enforcement official? No 

Have you been charged, convicted, or sentenced of a crime in any court? No 

Have you been or are you currently on probation or parole? No 

Are you currently on trial or awaiting a trial on criminal charges? No 

To your knowledge, have you ever been the subject or target of a federal; state or local criminal investigation? 

No 

12 
125 

If the answer to any of the questions above is yes, please answer the questions below for 

each criminal event (citation, arrest, investigation, etc.). If the event was an investigation, 

where the question below asks for information about the offense, please offer infonnati~tn 

about the offense under investigation (if lm.own). 

A) Date of offense: 

a. Is this an estimate (Yes/No): 

B) Description of the specific nature ofthe offimse: 

C) Did the offense involve any of the following? 1) Domestic violence or a crime of violence (such as battery or assault) against your child, dependent, cohabitant, spouse, former spouse, or someone with whom you share a child in common: Yes I No 

2) Flrearms or explosives: Yes I No 

3) Alcohol or drugs: Yes I No 

D) Location where the offense occurred (ciiy, county, state, zip code, coW!try): 

E) Were you arrested, summoned, cited or did you receive a ticket to appear as a result of this offense by any police officer, sheriff, marshal or any other type of law enforcement official: Yes I No 

1) Name of the law enforcement agency that arrested/cited/summoned you: 

2) Location of the law enforcement agency (city, county, state, zip code, country): 

F) As a result of this offense were you charged, convicted, currently awaiting trial, and/or ordered to appear in court in a criminal proceeding against you: Yes I No 

l) If yes, provide the name of the court and the location of the court (city, county, state, zip code, COW!try); 

2) If yes, provide all the charges brought against you for this offimse, and the outcome of each charged offense (such as fuund guilty, fuund not-guilty, charge dropped or "nolle pros," etc). If you were found guilty of or pleaded guilty to a lesser offense, list separately both the original charge and the lesser offense: 

3) If no, provide expianation: 

G) Were you sentenced as a result of this offense: Yes I No 

H) Provide a description of the sentence: 

I) Were you sentenced to imprisonment for a term exceeding one year: Yes I No 

J) Were you incarcerated as a result of that sentence for not less than one year: Yes I No 

13 
126 

K) If the conviction resulted in imprlsorunent, provide the dates that you actually were incarcerated: 

L) If conviction resulted in probation or parole, provide the dates of probation or parole: 

M) Are you currently on trial, awaiting a trial, or awaiting sentencing on criminal charges for this offense: Yes I 

No 

N) Provide explanation: 

14 
127 

10. Civil Litigation and Administrative or Legislative Proceedings 

(A) Since (and including) your 18th birthday, have you been a party to any public record 

civil court action or administrative or legislative proceeding of any kind that resulted in (1) 

a finding of wrongdoing against you, or (2) a settlement agreement for you, or some other 

person or entity, to make a payment to settle allegations against you, or for you ~!! ~.k!:, ~r:_ 

refrain from taking, some action. Do NOT include small claims proceedings. ~'¢1_~ 

(B) In addition to those listed above, have you or any business of which you were an officer, 

director or owner ever been involved as a party of interest in any administrative agency 

proceeding or civil litigation? Please identify and provide details for any proceedings or 

civil litigation that involve actions taken or omitted by you, or alleged to have been taken or 

omitted by you, while serving in your official capacity. 

Court for 

DC 

MciCon.nen! 

Federal Election 

Commission 

15 

constitutionality of the Bi· 

Pa.rtlsan Campaign Reform 

Act. 

and ultimately the 

US Supreme Court 

upheld the statute. 
128 

11. Breach of Professional Ethics 

(A) Have you ever been disciplined or cited for a breach of ethics or unprofessional conduct 

by, or been the subject of a complaint to, any court, administrative agency, professional 

association, disciplinary committee, or other professional group? Exclude cases and 

proceedings already listed. No 

(B) Have you ever been f'Ired from a job, quit a job after being told you would be fired, left 

a job by mutual agreement following charges or allegations of misconduct, left a job by 

mutual agreement following notice of unsatisfactory performance, or received a written 

warning, been officlB;IIY r~primanded, ~uspe~ded,:,r ~~~!.l!!i!'-~.e. d for misconduct in the 

workplace, such as violation of a securtty policy? l!~kf,~:!fi 

12. Tax Compliance 

(fhls information will not be published in the record of the hearing on your nomination, 

butit wili be retained in the Committee's files and will be available for public Inspection.) 

REDACTED 

16 
129 

REDACTED 

13. Lobbying 

In the past ten yelll'll, have you registered as a lobbyist? If so, please indicate the state, 

federal, or local bodies with which you have registered (e.g, House, Senate, California 

Secretary of State). 

14. Outside Positions 

X See OOE Form 278. (If, for your nomination, you have rompleted an OGE Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check t!W box here to 

~mplete this section and then proceed to the next section.) 

For the preceding ten calendar years and the current calendar year, report any positions 

held, whether compensated or not. Positions include but are not limited to those of an 

officer, director, trustee, general partner, proprietor,.representative, employee, or 

consultant of any corporation, f"ll'm, partnership, or other business enterprise or any non18 
130 

profit organization or educational institution. Exclude positions with religious, social, 

fraternal, or political entities and those solely of an honorary nature. 

15. Agreements or Arrangements 

X See OGE Form 278. (If, for your nomination, you have completed an OGE Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check the box here to 

complete this section and then proceed to the next section.) 

As of the date of filing your OGE Form 278, report your agreements or arrangements for: 

(1) eontinuing participation in an employee benefit plan (e.g. pension, 401~ deferred 

compensation); (2) continuation of payment by a former employer (including severance 

payments); (3) leaves of absence; and (4) future employment. 

Provide information regarding any agreements or arrangements you have concerning (1) 

future employment; (2) a leave of absence during your period of Government service; (3) 

continuation of payments by a former employer other than the United States Government; 

and (4) continuing participation in an employee welfare or benefit plan maintained by a 

former employer other than United States Government retirement benefits. · 

19 
131 

16. Additional Financial Data 

All information requested under this heading must be provided for yourself, your spouse, 

and your dependents. (This information will not be published in the reeonl of the hearing 

on your nomination, but it will be retabied In the Committee's fdes and will be available for 

publie inspeetiou.) 

REOAC1EO 
REDACTED 

SIGNATURE AND DATE 

I hereby state that I have read the foregoing Statement on Biographical and Finan~ Information and that the informatio

provided therein is, to the best of my knowledge, current, accurate, md complete. · 

f<(&J71~ 1:1-17-17 

26 
133 

UNITED STATES OFFICE OF 

GOVERNMENT ETHICS REDACTED 

* ------------------------------

The Honorable Ron Johnson 

Chairman 

Committee on Homeland Security 

and Governmental Affairs 

United States Senate 

Washington, DC 20510 

Dear Mr. Chairman: 

November 6, 2017 

Under the Ethics in Government Act of 1978, Presidential nominees requiring Senate 

confirmation who are not expected to serve in their Government positions for more than 60 days 

in a calendar year are not required to file public financial disclosure reports. The Act, as 

amended, however, contains a provision in section 101 (b) that allows the committee with 

jurisdiction to request any financial information it deems appropriate from the nominee. 

We understand that your committee desires to receive a financial disclosure report (OGE 

Form 278) from any Presidential nominee for a position on the Board of Governors of the United 

States Postal Service, along with a written opinion from this Office regarding any possible 

conflicts of interest. 

Therefore, I am forwarding a copy of the financial disclosure report of 

Robert M. Duncan, who has been nominated by President Trump for the position of a Governor 

on the Board of Governors, United States Postal Service. Because the nominee is not expected 

to serve more than 60 days in any calendar year, the enclosed report and this letter are 

submitted to you in accordance with your committee's confirmation procedures and will be 

available for public inspection only to the extent provided by your practices. There is no 

authority under the Act for public release of this material by the executive branch. 

We have reviewed the report and have obtained advice from the agency concerning any 

possible conflict in light of its functions and the nominee's proposed duties. Also enclosed is an 

ethics agreement outlining the actions that the nominee will undertake to avoid conflicts of 

interest. Unless a date for compliance is indicated in the ethics agreement, the nominee must 

fully comply within three months of confirmation with any action specified in the ethics 

agreement. 

1201 NEW YORK AVE NW ·SUITE 500 ·WASHINGTON DC ·20005 * * * * 
134 

The Honorable Ron Johnson 

Page2 

Based thereon, we believe that this nominee is in compliance with applicable laws and 

regulations governing conflicts of interest. 

Enclosures REDACTED 

Sincerely, 

DAVID 

APOL 

David J. A pol 

, DigitallysignedbyDAVIDAPOL 

\ PN: c-US, o-U.S. Oovemmcnt, .w-Orn~ 

,ofGovemmmt Ethia:, cacoOA V1D APOL. 

~~~4~ 19200l00.100.1.1 .. 9S4910029818 

Date: l017.ll.0610;1S:J:t ..O!i'OO' 

Acting Director and General Counsel 
135 

Robert M. Duncan 

October 24, 2017 

Michael J. Elston 

Designated Agency Ethics Official 

Associate General Counsel and Chief Ethics & Compliance Officer 

U.S. Postal Service 

475 L'Enfant Plaza, SW 

Washington, DC 20260-1100 

Dear Mr. Elston: 

The purpose of this letter is to describe the steps that I will take to avoid any actual or 

apparent conflict of interest in the event that I am confirmed as a Member of the Board of 

Governors of the United States Postal Service. 

As required by 18 U.S.C. § 208(a), I will not participate personally and substantially in 

any particular matter in which I know that I have. a financial interest directly and 

predictably affected by the matter, or in which I know that a person whose interests are 

imputed to me has a financial interest directly and predictably affected by the matter, 

unless I first obtain a written waiver, pursuant to 18 U.S. C.§ 208(b)(l), or qualify for a 

regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). I understand that the interests 

of the following persons are imputed to me: any spouse or minor child of mine; any 

general partner of a partnership in which I am a limited or general partner; any 

organization in Which I serve as officer, director, trustee, general partner or employee; 

and any person or organization with which I am negotiating or have an arrangement 

concerning prospective employment. · 

I will continue to serve as Chairman and CEO oflnez Deposit Bank and as Chairman and 

CEO of Community Holding Company. My spouse is also employed by Inez Deposit 

Bank and the Community Holding Company. In my role as Governor, I will not 

participate personally and substantially in any particular matter th&t to my knowledge has 

a direct and predictable effect on the financial interests ofinez Deposit Bank or 

Community Holding Company, unless I first obtain a written waiver, pursuant to 18 

u.s.c. § 208(b)(l). 

I will retain my unpaid positions as Trustee and Secretary for Highlands Regional 

Medical Center, as Trustee for Consolidated Health Systems, as Chairman and Trustee 

for the College Board of Alice Lloyd College, as Director of Data Trust and Director of 

DT Client Services, and as a member of the College Visiting Committee of the UK 

College of Law arid the UK School of Public Policy. I will not participate personally and 

substantially in any particular matter in which I know that any of these organizations or 

entities has a fmancial interest, if the particular matter has a direct and predictable effect 

on that interest, unless I first obtain a written waiver, pursuant to 18 U.S. C. § 208(b)(l) or 

qualify for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). 
136 

I resigned from my position with the American Coalition for Clean Coal Electricity in 

December, 2016. For a period of one year after my resignation, I will not participate 

personally and substantially in any particular matter involving specific parties in which I 

know the American Coalition for Clean Coal Electricity is a party or represents a party, 

unless I am first authorized to participate, pursuant to 5 C.F.R. § 2635.502(d). 

I have been advised that I will likely serve on the Board of Governors for no more than 

60 days in any period of 365 consecutive days. Accordingly, I understand that I may not, 

under 18 U.S. C.§§ 203(c)(l) and 205(c)(l), provide any representational services or act 

as agent or attorney for another in any particular matter involving specific parties in 

which I have participated personally and substantially as a government official. I also 

understand that I may not receive a share of any payment made for such representational 

services performed by another. I understand that additional requirements of iS U.S.C. §§ 

203(c)(2) anQ. 205(c)(2) will apply to me if! serve for more than 60 days in any period of 

365 consecutive days. In that event, I will comply with all applicable requirements, and I 

will consult your office if I have any questions about those requirements. 

I will meet in person before my first meeting of the board in order to complete the initial 

ethics briefing required under 5 C.P.R.§ 2638.305. Within 90 days of my confinnation, I 

will document my compliance with this ethics agreement by notifying you in writing 

when I have completed the steps described in this ethics agreement. 

I have been advised that it is the Postal Service's position that an. appearance of 

impropriety may be created by my holding any financial interests in its competitors, i.e., 

companies that deliver mailable matter outside the U.S. mails ~Amazon, Federal 

Express, United Parcel Service, DHL, etc.). I will divest my present interest in Amazon 

(through a profit sharing plan) within 90 days of my confirmation. I will not 

participate personally and substantially in any particular matter that to my knowledge has 

a direct and predictable effect on the financial interests of this entity until I have divested 

it, unless I first obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(1), or qualify for 

a regulatory exemption, pursuant to 18 U.S. C.§ 208(b)(2). I agree that during my service 

as a member of the Board of Governors, I will not invest in any company that directly 

competes with the U.S. Postal Service ~Amazon, Federal Express, United Parcel 

Service, DHL, etc.). 

Finally, I will recuse myself from participation on a case-by-case basis in any. particular 

matter involving specific parties in which l determine that a reasonable person with 

knowledge of the relevant facts would question my impartiality in that matter; unless I 

am first authorized to participate, pursuant to 5 C.F.R. part 2635, subpart E. 

Sincerely, 

~~:)~ Robert M. Duncan 
137 

U.S. Senate Committee on Homeland Security and Governmental Affairs 

Pre-hearing Questionnaire 

For the Nomination of Robert Duncan to be 

Governor of the United States Postal Service 

I. Nomination Process and Conflicts oflnterest 

l. Did the President give you specific reasons why he nominated you to serve as a 

Governor of the United States Postal Service? 

The President did not give me specific reasons why he nominated me to serve as a 

Governor of the United States Postal Service (USPS). 

2. Were any conditions, express or implied, attached to your nomination? If so, please 

explain. 

There were no conditions expressed or implied attached to my nomination. 

3. Have you made any commitments with respect to the policies and principles you will 

attempt to implement as Governor? If so, what are they, and to whom were the 

commitments made? 

I have made no commitments with respect to the policies and principles I will 

attempt to implement as Governor. 

4. Are you aware of any business relationship, dealing, or financial transaction that could 

result in a possible conflict of interest for you or the apperu;ance of a conflict of interest? 

If so, please explain what procedures you will use to recuse yourself or otherwise 

address the conflict. And if you will recuse yourself, explain how you will ensure your 

responsibilities are not affected by your recusal. 

I am not aware of any business relationships, or financial transactions that could 

result in a possible conflict of interest other than those disclosed to Michael Elston, 

Designated Agency Ethics Official, US Postal Service by letter dated October 24, 

2017 and attached to this answer. I have agreed to divest my present interest in 

Amazon (through a profit sharing plan) within 90 days of my confu-mation. I also 

agreed that during my service as a member of the Board of Governors I will not 

invest in any company that directly competes with the US Postal Service (eg. 

Amazon, Federal Express, United Parcel Service, DHL, etc.). I agree to recuse 

myself from participation on a case-by-case basis unless I am first authorized to 

participate, pursuant to 5 C.F.R. part 2635, subpart E. 

Senate Homeland Security and Governmental Affairs Committee Pagel 
138 

Robert M. Duncan 

October 24, 2017 

Michael J. Elston 

Designated Agency Ethics Official 

Associate General Counsel and Chief Ethics & Compliance Officer 

U.S. Postal Service 

475 L'Enfant Plaza, SW 

Washington, DC 20260-1100 

Dear Mr. Elston: 

The purpose of this letter is to describe the steps that I will take to avoid any actual 

or apparent conflict of interest in the event that I am confirmed as a Member of the 

Board of Governors of the United States Postal Service. 

As required by 18 U.S.C. § 208(a), I will not participate personally and substantially 

in any particular matter in which I know that I have a financial interest directly and 

predictably affected by the matter, or in which I know that a person whose interests 

are imputed to me has a fmanclal interest directly and predictably affected by the 

matter, unless I first obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(1), or 

qualify for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). I understand 

that the interests of the following persons are imputed to me: any spouse or minor 

child of mine; any general partner of a partnership in which I am a limited or 

general partner; any organization in which I serve as officer, director, trustee, 

general partner or employee; and any person or organization with which I am 

negotiating or have an arrangement concerning prospective employment. 

I will continue to serve as Chairman and CEO of Inez Deposit Bank and as 

Chairman and CEO of Community Holding Company. My spouse is also employed 

by Inez Deposit Bank and the Community Holding Company. In my role as 

Governor, I will not participate personally and substantially in any particular 

matter that to my knowledge has a direct and predictable effect on the financial 

interests of Inez Deposit Bank or Community Holding Company, unless I first 

obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(I). 

I will retain my unpaid positions as Trustee and Secretary for Highlands Regional 

Medical Center, as Trustee for Consolidated Health Systems, as Chairman and 

Trustee for the College Board of Alice Lloyd College, as Director of Data Trust and 

Director ofDT Client Services, and as a member ofthe College Visiting Committee 

of the UK College of Law and the UK School of Public Policy. I will not participate 

personally and substantially in any particular inatter in which I know that any of 

Senate Homeland Security and Governmental Affairs Committee Page2 
139 

these organizations or entities has a financial interest, if the particular matter has a 

direct and predictable effect on that interest, unless I first obtain a written waiver, 

pursuant to 18 U.S.C. § 208(b)(1) or qualify for a regulatory exemption, pursuant to 

18 u.s.c. § 208(b)(2). 

I resigned from my position with the American <:;oalition for Clean Coal Electricity 

in December, 2016. For a period of one year after my resignation, I will not 

participate personally and substantially in any particular matter involving specific 

parties in which I know the American Coalition for Clean Coal Electricity is a party 

or represents a party, unless I am first authorized to participate, pursuant to 5 

C.F.R. § 2635.502(d). 

I have been advised that I will likely serve on the Board of Governors for no more 

than 60 days in any period of 365 consecutive days. Accordingly, I understand that 

I may not, under 18 U.S.C~ §§ 203(c)(l) and 205(c)(l), provide any representational 

services or act as agent or attorney for another in any particular matter involving 

specific parties in which I have participated personally and substantially as a 

government officiaL I also understand that I may not receive a share of any 

payment made for such representational services performed by another. I 

understand that additional requirements of 18 U.S.C. §§ 203(c)(2) and 205(c)(2) will 

apply to me if I serve for more than 60 days in any period of 365 consecutive days. 

In that event, I will comply with all applicable requirements, and I will eonsult your 

office if I have any questions about those requirements. 

I will meet in person before my first meeting of the board in order to complete the 

initial ethics briefmg required under 5 C.F.R. § 2638.305. Within 90 days of my 

confirmation, I will document my compliance with this ethics agreement by 

notifying you in writing when I have completed the steps described in this ethics 

agreement. 

I have been advised that it is the Postal Service's position that an appearance of 

impropriety may be created by my holding any fmancial interests in its competitors, 

i.e., companies that deliver mailable matter outside the U.S. mails I£& Amazon, 

Federal Express, United Parcel Service, DHL, etc.). I will divest my present interest 

in Amazon (through a profit sharing plan) within 90 days of my confirmation. I will 

not participate personally and substantially in any particular matter that to my 

knowledge has a direct and predictable effect on the financial interests of this entity 

until I have divested it, unless I first obtain a written waiver, pursuant to 18 U.S.C. § 

208(b)(1), or qualify for a regulatory exemption, pursuant to 18 U.S.C. § 208(b)(2). 

I agree that during my service as a member of the Board of Governors, I will not 

invest in any company that directly competes with the U.S. Postal Service ~ 

Amazon, Federal Express, United Parcel Service, DHL, etc.). 

Senate Homeland Security and Governmental Affairs Committee Page3 
140 

Finally, I wiD recuse myseH from participation on a case-by~ase basis in any 

particular matter involving specific parties in which I determine that a reasonable 

person with knowledge of the relevant facts would question my impartiality in that 

matter, unless I am first authorized to participate, pursuant to 5 C.F.R. part 2635, 

subpart E. 

Sincerely, 

Robert M. Duncan 

II. Background ofthe Nominee 

5. What specific background and experience affinnatively qualifies you to be a Governor of 

the Postal Service? 

I am affirmatively qualified to be a Governor of the Postal Service by my education 

and experience in the public, private, and nonprofit sectors. I have served on 

numerous boards including as Chairman of the Tennessee Valley Authority (I'V A), 

Chairman of the Republican National Committee, President of a national trade 

association, the American Coalition for Clean Coal Electricity, and Chairman of a 

community bank, the Inez Deposit Bank. My education includes a BA from the 

University of the Cumberlands, a JD from the University of Kentucky College of 

Law, and executive education programs at the University of Wisconsin, the 

Kennedy School of Government, and the Harvard Business School. 

6. If confirmed, how would your experience in the private sector prepare you to serve as a 

Governor of the Postal Service? 

My private sector experience includes general management, personnel, financial 

management, and strategic planning, The experience as a member of the President's 

Commission on Executive Exchange allowed me to study the best practices of 

government and business enterprises. I feel prepared to work in the public, private, 

and nonprofit sectors. Service as Chairman of both the Republican National 

Committee and the Tennessee Valley authority gave me an appreciation oflarge, 

diverse organizations and helped me develop strategies for communicating 

externally and internally as a leader. 

7. Please describe: 

a. Your leadership and management style. 

Senate Homeland Security and Governmental Affairs Committee Page4 
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My management style is collaborative. I believe the cultural tone of an organization 

is set at the top. 

b. Your experience managing personnel. 

I have managed organizations of all sizes from small businesses to the largest 

political organization in the world. 

c. What is the largest number of people that have worked under you? 

As Chairman ofthe Republican National Committee, I bad over SOO direct 

employees and thousands ofvolunteen reporting to me, 

III. Role of a Governor of the United States Postal Service 

8. Please describe your view of the Postal Board of Governor's (Board) core mission and a 

Governor's role in achieving that mission. 

The core mission of the Board of Governors is to ensure that the Postal Service 

carries out its mission by directing and controlling expenditures and reviewing the 

policies and practices of the Postal Service, selecting the Postmaster General and 

Inspector General and determining the direction by strategic decision making. 

Individual Govemon advise and question management. 

9. If confirmed, what specific contributions do you hope to make during your time on the 

Board? 

If confirmed, I will focus on the enumerated statutory responsibilities and serve the 

public interest. I do not have a predetermined agenda. 

10. What do you believe are the functions and responsibilities of an individual Governor? 

What in your training and experience demonstrates your qualifications to fulfill these 

functions and responsibilities? 

Individual Governors are charged by statute with responsibilities which must be 

independently decided to serve the public interest. There may be times I would 

dissent from recommendations of management and other board members. My 

experiences in various sized organizations in the public, private, and nonprofit 

sectors helped prepare me for the responsibilities. Governors must ask probing 

questions of management and assure accountability. 

11. What do you see as the main challenges facing the Postal Service? What do you believe 

should be the Board's top priorities in meeting those challenges? 

The Postal Service has numerous challenges including fmancial constraints, 

operational efficiencies, and disruptive technology. A top priority will be 

Senate Homeland Security and Governmental Affairs Committee PageS 
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maintaining a high level of service while observing fiscal responsibility. Developing 

and implementing a strategic business plan is another top priority. 

12. What do you believe should be the respective roles and functions of the Board and the 

Postal Service management? How do you believe the Board and management can best 

work together to meet the challenges facing the Postal Service? 

The Board's role is setting strategic goals and overseeing those goals. I'm confident 

that management will provide sufficient detailed information for both functions. 

The Board should be respectful of management's day to day responsibilities while 

asking pertinent questions to assure accountability. Management must be 

responsive to reasonable oversight requests from the Board. 

13. The Governors are chosen to represent the public interest generally. As a Governor, 

how will you plan to interact with various stakeholders interested in postal issues and 

how can you effectively represent their interests? 

I recommend that a public listening session be held in conjunction with Board 

meetings. I also plan to attend meetings and conferences relating to postal 

stakeholders. I hope to visit various postal facilities and meet with staff and 

customers. 

14. The Postal Accountability and Enhancement Act of2006 (PAEA) requires that by the 

end 2015, at least four members of the Board have experience managing an organization 

of 50,000 employees or more. What are your views on this requirement for appointment 

to the Board of Governors? 

The public interest is served by having a diverse Board, including those with 

experience managing large organizations. 

IV. Policy Questions 

Postal Reform and Financial Issues 

15. The Postal Service continues to experience volume and revenue losses. The Postal 

Service ended Fiscal Year (FY) 2017 with a net loss of$2.7 billion. 

a. In your view, what is the Board's role in overseeing the Postal Service's efforts to 

improve its financial condition and to increase postal revenue and cut costs, while 

also meeting its universal service obligations and other statutory requirements? 

The Board has an important oversight role in improving the USPS fmancial 

condition, and balancing the interests of statutory requirements, including universal 

service obligations, with cost saving and revenue opportunities. The Board must 

consider the consequences of fiscal proposals and advise management and Congress 

through the budgeting process. 

Senate Homeland Security and Governmental Affairs Committee Page6 
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b. How does the Board's role differ from the role of the Postal Regulatory Commission 

(PRC) or the role of Congress? 

The ultimate authority lies with Congress on significant policy issues. The Postal 

Regulation Commission bas separate statutory duties from the Board, but the issue 

areas overlap. The PRC must consider competitive aspects of Board policies and act 

as an impartial regulator. 

16. Postal Service volumes and revenues associated with its letter mail and other market 

dominant products continue to decline, and First-Class Mail in particular is projected to 

significantly decline over the next decade. At the same time, the volume of packages 

and its competitive products have grown significantly in recent years. 

a How can the Postal Service remain viable as letter mail volume declines? 

The Postal Service can remain viable as letter mail volume declines by being agile 

and flexible in developing new business products and programs. 

b. How can the Postal Service take advantage of the growing popularity of e-commerce 

and package delivery? 

A priority is making sure USPS bas the best technology employees and consultants 

while aligning policies and practices to take advantage of the great opportunities in 

e-commerce_and package delivery. This starts with a sound business plan. 

c. What new actions should the Postal Service take to maintain its viability and 

competitiveness in both its traditional lines of business and in potential growth areas? 

It appears the Postal Service lacks the flexibility to move quickly to take advantage 

of market changes due to overlapping responsibilities with the PRC and 

Congressional mandates. 

d. What do you believe are the proper limitations of the Postal Service with respect to 

competition with the private sector? 

The special status for mail delivery and tax exemption comes with a responsibility of 

fairness to the private sector and service to customers. I will encourage management 

to look for opportunities to expand postal products and services for customers 

including partnerships with private sector entities. 

e. How proactive should the Board be in identifying areas for the Postal Service to cut 

costs quickly so that it can cover its operating expenses? 

Daily operations are the responsibility of management. Management should 

recommend priorities for cost cutting and execute the policies adopted by the Board. 

Senate Homeland Security and Governmental Affairs Committee Page 7 
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The efficiency of the plans should be monitored regularly by the Board with 

appropriate accountability included. 

f. What are the Board's role and responsibilities in identifying opportunities for the 

Postal Service to increase volume? 

The Board's role in identifying opportunities for Postal Service increased volume 

begins with a well-developed business plan, supplemented by aggressive policies 

fostering innovation, and followed by regular oversight and evaluation tied to 

accountability. 

17. What are your views on the "universal service obligation"? 

The universal service standard is an essential mission of the Postal Service and 

assists in "binding the nation together." I strongly support the concept. 

18. How do you view current service standards and delivery frequency with respect to the 

obligation for service to every American? 

I have not formed an opinion on the standards and frequency of delivery. I 

recognize the changing postal habits of consumers and businesses and require more 

internal Postal Service information to develop a position. 

19. The Government Accountability Office (GAO) again included the Postal Service on its 

High-Risk List in 2017 because of its precarious fmancial condition. GAO added the 

Postal Service's financial condition on its high-risk list in 2009, after removing it in 

2007. In your view, what should be the Postal Service's strategy for improving its 

financial condition and restructuring its business model to ensure its long-term viability, 

in addition to any factors that the Postal Service has announced as part of its new 

business model? 

The Postal Service can ensure its long-term viability by being agile and flexible in 

developing new business products and programs to meet market demands. The 

Postal Service should focus on opportunities in the digital economy through the 

growth of e-commeree and package delivery, including "last mile" delivery 

services. In addition, the Postal Service should concentrate internally on fmding 

efficiencies and reducing costs. 

20. The Postal Service has estimated its liabilities (including retiree pension and health 

benefits) to be over $484.8 billion while the combined assets are $363.1 billion, leaving 

an unfunded liability of $121.7 billion. How do you believe the Postal Service should 

address its unfunded liability? 

The Postal Service must address the challenges of declining mail volume and 

growing expenses. The status quo is not acceptable or sustainable.. I would consider 

Senate Homeland Security and Governmental Mfairs Committee PageS 
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proposals to better utilize non-productive assets for the purpose of redueing the 

unfunded liability. 

21. In recent years, postal management has indicated that the Postal Service has been 

financially unable to make the investments necessary to replace its aging vehicle fleet or 

make other necessary capital investments in order to remain viable and competitive in 

the coming years. What steps do you believe the Board should take to prioritize key 

capital investments and allocate the resources necessary to make them? 

Capital investments are critical for the future of the Postal Service to provide 

infrastructure for sustainable services. The Board most develop a strategic process 

to align expenses needed for deUvering services with revenue produeed. 

22. What short and long-term actions should Congress take to assist the Postal Service in 

achieving financial viability? 

I do not have a predetermined agenda, bot I beUeve Congress must address the gap 

between the Board's broad responsibility and lack of authority. This was pointed 

out by the former Inspector General in a report on governance. 

Postal Rates and New Products 

23. One of the core principles ofPAEA was to provide Postal Service customers, through 

the establishment of an inflation-based rate cap, with predictability and stability in 

pricing of the Postal Service's market dominant products. Pursuant to PAEA, the PRC 

completed a review of whether the rate cap met the criteria laid out by 39 U.S.C. § 3622, · 

including stability, fairness, and generating adequate revenue to cover Postal Service 

costs. The PRC found that the cap did not meet all of these criteria, specifically the 

requirement that the cap did not allow for long-term fiil.ancial stability of the Postal 

Service or for the Postal_ service to maintain high quality service standards. 

a. Do you believe the inflation-based rate cap has met the objectives and factors laid out 

in 39 u.s.c. § 3622? 

It appears that the cap does not allow for adequate pricing flexibility resulting in the 

Postal Service's inability to generate adequate revenues to cover costs and secure 

long-term finaneial viability. 

b. Which of these objectives or factors, if any, do you believe should be weighted above 

others? 

It is imperative that the Postal Service generates adequate revenues to cover costs 

and allows for long term financial viabiUty. 

Senate Homeland Security and Governmental Affairs Committee Page9 
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24. The PRC also recently proposed adjusting the rate cap to allow the Postal Service to 

raise prices above inflation on market dominant products. In considering price increases, 

how should the Postal Service balance the need for additional revenue with the 

possibility that higher rates could further reduce mail volumes? 

It is always possible to increase prices to the poiDt of losing volume and that is why 

this issue must be thoroughly considered. WiD a high level of service offset a price 

iDcrease? How mission critical is the price increase? Are costs being adequately 

covered and revenues produced for future investments? These and many more 

questions must be answered before moviDg forward with a large iDcrease. 

25. The Postal Service has requested legislation authorizing greater flexibility in offering 

non-postal products. 

a Under what circumstances should the Postal Service be permitted to offer non-postal 

products? ' 

If greater flexibility is available to offer non-postal products, then the Postal Service 

should consider offeriDg the products while not using tax payer dollars to compete 

with the private sector. 

b. To what extent do yo1<1 believe the Postal Service should rely on the provision of nonpostal products in its efforts to generate additional revenue? 

I do not have sufficient information to answer the·question. 

c. How would you ensure the Postal Services does not compete unfairly with the private 

sector in selling non-postal products? 

If greater flexibility is available to offer non-postal products, the Board should 

develop guidelines on the utilization of tax payer assets to compete with the private 

sector. 

26. How can the Postal Service take better advantage of its current authorities to make the 

mail more appealing and valuable to customers and attract additional mail volume? 

While the postal brand is trusted, it represents the past. I would consider a strategic 

rebranding of Postal Assets with emphasis one-products, such as the daily scanning 

service. I believe technology wiD allow new products for the Postal Service. 

Facility Closings and Service Changes 

27. What role should the Board have in decisions to realign postal retail and mail processing 

networks, including decisions to close specific facilities? 

Senate Homeland Security and Governmental Affairs Committee Page 10 
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The Board's role in decisions to realign postal retail and mail processing networks 

should be, as a fiduciary, to review the recommendations and advise management 

by seeking to align with both Congressional authorization and intent while 

observing fiscal responsibility. 

28. How can the Board ensure the Postal Service communicates with its customers and 

employees so that they are aware of updated information on the consolidation process, as 

it becomes available? 

The Postal Service must ensure that it communicates with its customers and 

employees about the consolidation process by using a multi-channel approach, 

including print, television, and social media. It is critical for the Board to remain 

transparent about the process while seeking stakeholder involvement at every level. 

29. The Postal Service is required to deliver mail to every address in the country, creating 

the need for retail postal locations in low-density counties and towns,' How would you 

balance the Postal Service's universal service obligation and the need for rural counties 

to have reasonable access to the postal services when looking at ways to improve the 

Postal Service's financial condition? 

The universal service standard is an essential mission of the Postal Service and 

assists in "binding the nation together." Congress has called on the Postal Serviee to 

provide a "maximum degree of effective and regular postal services to rural areas." 

To balance this requirement with improving f'mancial viability, the Postal Service 

should remain agile and flexible in identifying and executing the standards and 

frequency of postal services and delivery. 

30. According to GAO, approximately 41 percent of postal revenue comes from alternate 

retail channels such as the Postal Service website, automated postal centers, and contract 

postal units. Do you believe the Postal Service should increase the use of alternate retail 

channels, and if so, how should this be accomplished? 

Yes, I believe the Postal Service should increase alternate retail channels to increase 

revenue and improve customer experiences through enhanced convenience and 

expanded access points. This allows the Postal Service to shift traditional retail 

business to lower-cost channels and expand partnerships with the private sector. 

31. The Postal Service has, in the past, proposed both the elimination of Saturday delivery of 

some classes of mail and has nearly eliminated the overnight service standard. 

a What is your opinion of the Postal Service's proposals to eliminate Saturday delivery 

of some classes of mail and lower certain service standards? 

The Postal Service should remain agile and flexible in identifying and executing the 

standards and frequency of postal services and delivery. 

Senate Homeland Security and Governmental Affairs Committee Page 11 
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b. What steps should the Postal Service take to ensure that any service changes it makes 

do not disproportionately harm any subset of postal customers and are consistent with 

the Postal Service's universal service obligation? 

The Postal Service mwt obtain public input and analyze potential effects of any 

service changes to determine how changes would harm customers. The Postal 

service should remain agile and ftexible in identifying and executing the standards 

and frequency of postal services and delivery to meet the needs of each subset of 

customers. 

c. How do you believe that changes to service affect customers' attitudes towards and 

use of the Postal Service? 

I believe if the process Is open and transparent customer attitudes will not 

significantly change. 

d. How should the Postal Service balance the potential cost savings gained or potential 

revenue lost from changing service? 

Both cost savings and revenue gains must be considered in changing service. 

Finding the point to maximize revenue to assure long-term viability of the enterprise 

is critical. 

Workforce-Related Issues 

32. Since 1999, when the workforce peaked at over 900,000 employees, the Postal Service 

has been reducing its workforce, including through hiring freezes, early retirements, 

incentive payments for some targeted attrition, and other ways. In the last two years, 

however, this trend is reversing and the number of Postal Service employees is 

increasing. Does the Postal Service have sufficient flexibility to adjust its workforce to 

its opemtional needs? If not, what additional flexibility is needed? 

The constraints imposed on the Postal Service limit the flexibility needed to adjust 

workforce and operational needs. The process to dose offices, to reduce daily 

service, and prefunding retiree benefit liabilities are examples of limitations on 

management. These and other issues require cooperation with Congress, the PRC, 

employees, management and the Board. 

33. As an increasing number of postal executives, managers, and supervisors are eligible to 

retire, how can the Board work with postal management to address these challenging 

succession, continuity, and associated cost issues? 

Succession planning is essential to businesses, government agencies, and nonprofits 

of all sizes. Having consistent policies and practices that recognize the changing 

workforce and identification and nurturing successor management at all levels is 

essential. 

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34. In recent years, performance-based compensation systems have been implemented for 

postal executives, as well as managers and supervisors. The success of these systems 

depends on the credibility of the performance measures. How can the Board ensure the 

credibility of the Postal Service's performance-based compensation systems? Do you 

have an opinion about performance-based compensation? 

I generally favor performance-based compensation but recognize that specific 

performance measures on results and not activity is a key. The performance 

requires strict oversight by the Board to assure performance results. Successful 

systems have agreed to measures with clearly defined outcomes. 

35. Please describe the kind oflabor-management relationship you believe is most desirable 

at the Postal Service. 

I believe the labor-management relationship should be collaborative. Management 

must have constant communications with employees at all levels. I have served on 

boards of organizations with large and small labor unions and organizations of no 

unions. I believe the keys are consistent behavior and constant communications. 

Accountability 

36. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from Members of Congress? 

The Board should ask management to maintain a matrix of Congressional inquiries 

and their responses. Policies and procedures should be developed to monitor the 

responses. If there are exceptions to the policy they should be addressed at the next 

Board meeting or at an appropriate Board committee. The ability to manage their 

procedures would be part of management evaluations. 

37. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from the Postal Service Office 

oflnspector General (USPS OIG)? What do you believe should be the proper response 

of the Board to recommendations made by the USPS OIG to Postal Service 

management? 

Policies and procedures must be in place to assure all reasonable requests for 

information from the Inspector General are answered in a timely manner by Postal 

Service management as part of the Board's oversight role. The Board or 

appropriate committee should meet with the Inspector General regularly to 

consider recommendations. 

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38. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from the GAO? What do you 

believe should be the proper response of the Board to recommendations made by the 

GAO to Postal Service management? 

The same principles apply as outlined in questions 37 to all reasonable GAO 

requests. 

39. Protecting whistleblower confidentiality is of the utmost importance to this Committee. 

a During your career in the federal government, how did you address whistle blower 

complaints? 

Whistleblower confidentiality is essential to tbe Board oversight role. As a Director 

at TV A, I supported a plan to have a third party outside hotline readily available to 

all employees. I support the Board taking a proactive stance in protecting the 

integrity of the process. 

b. How do you plan to implement policies within the Postal Service to encourage 

employees to bring constructive suggestions forward without the fear of reprisal? 

Implementation of policies rest with management, but the Board must help create a 

culture of encouraging employees to bring forward constructive suggestions without 

fear of reprisal. Cultural changes require time to filter through a large organization 

and must begin at the top with tbe Board and Executive Management. 

c. Do you commit without reservation to work to ensure that any whistleblower within 

the Postal Service does not face retaliation? 

Yes 

d. Do you commit without reservation to take all appropriate action if notified about 

potential whistleblower retaliation? 

Yes 

V. Relations with Congress 

40. Do you agree without reservation to comply with any request or summons to appear and 

testify before any duly constituted committee of Congress if you are confirmed? 

Yes 

41. Do you agree without reservation to make any subordinate official or employee available 

to appear and testify before, or provide information to, any duly constituted committee 

of Congress if you are confirmed? 

Senate Homeland Security and Governmental Affairs Committee Page 14 
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Yes 

42. Do you agree without reservation to comply fully, completely, and promptly to any 

request for documents, communications, or any other agency material or information 

from any duly constituted committee of the Congress if you are confirmed? 

Yes 

VI. Assistance 

43. Are these answers your own? Have you consulted with Postal Service management, 

employees, or any other interested parties? If so, please indicate which entities. 

Yes, these answers are my own. I have not consulted with Postal Service 

management, employees, or interested parties. 

Senate Homeland Security and Governmental Affairs Committee Page 15 
152 

U.S. Senate Committee on Homeland Security and Governmental Affairs 

M'mority 

Supplemental Pre-hearing Questionnaire 

For the Nomination of Robert Duncan to be 

Governor of the United States Postal Service 

I. Nomination Process and Conflicts of Interest 

1. Has the President or his staff asked you to sign a confidentiality or non-disclosure 

agreement? 

No 

2. Has the President of his staff asked you to pledge loyalty to the President or the 

Administration? 

No 

3. During your tenure, have you asked any federal employee or potential hire to pledge 

loyalty to the President, Administration or any other government official? 

No 

II. Background of Nominee· 

4. Do you seek out dissenting views and how do you encourage constructive critical 

dialogue with subordinates? 

I seek dissenting views and encourage constructive dialogue with subordinates both 

formally and informally. I have successfully used anonymous written assessments. I 

have conducted 360" assessments. I also use informal off-the-record sessions to 

encourage constructive criticism. 

5. Please give examples of times in your career when you disagreed with your superiors and 

·aggressively advocated your position. Were you ever successful? 

I became a community bank CEO at an early age, so most of my advocating was to 

board members. The same is true with most of my leadership positions. I have 

advocated long-term policies of investing in training that has short-term costs but 

long-term payback. An example is a 40-years Investment in a formal paid Intern 

Program which is expensive but provides leadership development benefitting the 

community. In the nonprofit sector, I have advocated for more stringent conflict of 

interest policies and transparency. I have met limited success with some 

organizations. 

6. Please list and describe examples of when you made politically difficult choices that you 

thought were in the best interest of the country. 

Senate Homeland Security and Governmental Affairs Committee Page 16 
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In my role as RNC Chairman, I advoeated within the membership of the 

organization and externally for a comprehensive immigration policy that recognized 

that America is a nation of laws and a nation of immigrants. As a board member of 

the Tennessee Valley Authority, I voted for rate increases that preserved the 

financial viability of the organization. 

7. What would you consider your greatest successes as a leader? 

I consider my greatest success as a leader the development of talented young people. 

I have been involved in leadership development in all of my pursuits. The bank 

Intern Program was developed 40 years ago based on the White House Fellows 

Program. I currently chair the White House Fellows Program. I have chaired and 

participated in numerous programs including the Governor's Scholars Program 

and the Rogers Scholars Program. I have been able to move across public, private, 

and nonprofit sectors leveraging leadership skills I have learned and helping 

develop a new generation of leaders. 

8. What would you consider your greatest failure as a leader? What lessons did you learn 

from that experience? 

My greatest failure as a leader was not changing the culture of the TV A. I was asked 

to become Chairman after an environmental disaster. A majority of the board was 

not happy with the communications and legal response to the event. While I was 

able to work with management to improve our external messaging and take 

responsibility for our damage to property owners, I found the culture of the 

organization did not promote internal criticism and transparency. The board 

worked with management to implement a cultural improvement plan, but changes 

in the board membership and management meant the plan did not achieve success 

throughout the organization. In retrospect, I did not pay enough attention to the 

cultural warning signs signaled by the Inspector General prior to the disaster. 

Internal criticism may have prevented the event. The culture and "tone at the top" 

are priorities I now evaluate in every organization. 

III. Role of a Governor of the United States Postal Service 

9. The Postal Service possess vast physical assets (processing plants, equipment, vehicles, 

land, and buildings), much of which were transferred to the Postal Service from the 

furmer Department of the Post Office and were paid fur by taxpayers. As an essential part 

of the nation's supply chain, these assets can deliver about 154 billion mail items 

annually, nation-wide. 1 

1 United States Postal Service, Postal Facts 2017 (2017) (htt,ps://about.usps.com/whowe-are/postal-facts/oostalfacts2017-v2.pdt). 

Senate Homeland Security and Governmental Affairs Committee Page 17 
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Additionally, the Postal Service is at the center of the mailing and shipping 

industry, supporting about seven million jobs and about $1.41rillion in revenueslgenerating enormous value and wealth for mail related industries, their workers, and the 

economy as a whole. The Postal Service holds about $27 billion in balance sheet assets.3 

The Postal Service OIG has estimated the Postal Service's real estate portfolio asset value 

alone to have a market value of about $85 billion. 4 

If confirmed, how will you work to protect taxpayer and public ownership 

interests in the Postal Service's enormous physical assets, financial holdings, and 

retirement funds? How can the Postal Service realize and retain more of the value and 

profits its capital assets and operations generate? 

I will work to protect taxpayer and publk ownership interest in the Postal Service 

assets by applying sound financial principles, beginning by obtaining a clear 

understanding of the balance sheet and financial audits. There may be assets that 

can be better utilized; there may be pricing policies that should be reworked; there 

may be new products and services to be offered. I reserve judgment until I can 

adequately understand the extent of the assets and liabilities. 

I 0. How will you work to promote public transparency and oversight of the Postal Service's 

operations and financial performance, as well as, its management actions and overall 

integrity? 

Transparency is a primary goal based on my previous public service experiences. I 

willcarefully review recommendations from the Inspector General and other 

management studies. I will advocate for internal policies for transparency by the 

board and management while guarding any necessary business secrets. 

IV. Policy Questions 

Financial Issues and Operations 

11. America's population, and with it, the total number of addresses, continues to grow. 

Despite the growth in addresses, all of which the Postal Service is still required to deliver 

mail to, mail volumes continue to decrease. That puts the Postal Service in the difficult 

position of expanding its network despite shrinking demand. How should the Board be 

2 Envelope Manufacturers Association Foundation, US Mailing Industry Jobs and Study 

(20 15) ( tensionenvelope.com/sites/default!files/20 15-mailing-industry-job-study.pdf). 

3 United States Postal Regulatory Commission, United States Postal Service: 2017 

Report on Form 10-K (Nov 14, 2017) (https://about.usps.com/who-we-are/fmancials/1 Okreoorts/fv2017.pdf). 

4 United States Postal Service, Office of Inspector General, Be Careful About What You 

Assume (Feb. 16, 2015) (uspsoig.gov/blog/be-careful-what-you-assume). 

Senate Homeland Security and Governmental Affairs Committee Page 18 
155 

involved in decisions to right-size postal retail and mail processing networks, including 

decisions to close specific facilities? 

The Board is charged with determining the direction of the Postal Service and 

providing strategic decision making. The Board will review recommendations of 

management and align Congressional authorization and fiscal responsibility. 

I2. The 2006 Postal Accountability and Enhancement Act of2006 required the Postal 

Service to prefund I 00% of its future retiree health benefits liability. Without the 

prefunding requirement, the U.S. Postal Service would have produced a net profit every 

year from 20I2 to 20I6, roughly coinciding with the greater economic recovery from the 

Great Depression. Are you aware of any U.S. company that prefunds I 00% of any retiree 

benefit liability? Do you believe this is a sound accounting and business practice? If so, 

why? If not, why not? 

I am not aware of a company that prefunds 100% of its retiree benefit liabilities. 

While the prefunding may protect current employee's earned benefits and possibly 

reduce long term taxpayer expense, it creates difficulties in the Postal Service's 

ability to invest in the future and foster long term Onancial viability. This is a policy 

question that requires additional information and discussion. 

13. Too often, efforts to improve the Postal Service's financial condition have been borne by 

rural communities because post offices in those communities are not as profitable as 

higher-trafficked urban post offices and delivery costs are higher. Yet rural communities 

are, in many cases, more reliant on the Postal Service for delivering needed goods and 

services. What additional factors should be considered before the postal service makes 

decisions on cost -cutting efforts? 

As decisions are made on cost-cutting efforts, the availability of alternate retail 

channels and distance to nearby post office locations should be considered. The 

concept of a "basic and fundamental service to bind the nation together" is a 

statutory requirement. 

14. In 20I2, the Postal Service reduced delivery standards in order to consolidate a number 

of mail processing facilities. What do you think are the long-term financial costs and 

benefits to reducing the quality of the Postal Service's core products? 

The Board must consider the consequences of fiscal proposals and advise 

management. It appears that the reduction in delivery standards and the decline in 

the volume of first-class mail make the challenge of long-term financial viability 

more difficult. The Board should consider policies to add value to the first-class mail 

product while achieving operational efficiencies. 

Senate Homeland Security and Governmental Affairs Committee Page 19 
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Postal Reform 

15. Some view the Postal Service as "a business" to serve paying customers: others see it as 

a government services that must continue to be available to all citizens regardless of the 

fmancial profitability of operating in certain, more rural areas of the country. Which 

view should take priority? 

Rates 

I believe the Postal Service has a wider responsibility than a private sector business 

to serve the public interest. Congress, the Board, management, the citizens of 

America, and all stakeholders should have an opportunity to discuss this important 

question. There are other organizations that have public and private characteristics 

that should be studied. 

16. Since 2007, the Postal Service has reduced its career workforce by more than 200,000 

employees and closed I, 716 post offices. The Postal Service is also limited in its ability 

to increase revenue through rate increases on first class mail. With these restrictions in 

place, what are the Postal Service's best alternatives to raise additional revenue? Should 

it consider increasing prices on its parcel products? 

The Postal Service should evaluate the use of alternate retail channels, such as 

private retailers, self-service kiosks, and digital platforms to increase revenue and 

improve customer experiences. The Postal Service should be agile and flexible to 

meet market demands while providing fair and reasonable rates and fees. AU 

sources of revenue and levels of services should be evaluated. 

Customer Service 

17. The Postal Service sometimes is forced to temporarily close a retail postal facility, for 

example, after a natural disaster. Yet many of these fucilities stay closed for as much as 5 

years or longer with little or no communication with the affected community. How can 

the Board ensure that the Postal Service improves communication with its customers? 

It is unacceptable that there has been little or no communications before and/or 

after the closure of a postal facility, Transparency and open communications are 

essentiaL The Board should establish guidelines to ensure the Postal Service engages 

affected communities through a multi-channel approach while providing a 

reasonable estimate of permanent closure or reopening. This should be delegated to 

management with adequate reporting and accountability measures includes. 

Oversight 

Senate Homeland Security and Governmental Affairs Committee Page 20 
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18. The Postal Service has been operating without any independent Board Members for over 

a year, and without quorum since 2015. In the event this occurs in the future, what 

additional authorities should the Postmaster General, Deputy Pos1master General and 

Postal Regulatory Commission. be given to ensure that the Postal Service can continue to 

operate effectively and efficiently in the interim? 

Guided by statutes and its bylaws, the Board ensures that the Postal Service carries 

out its mission by directing and controlling expenditures and reviewing the polities 

and practices of the Postal Service. There are a number of decisiom that must be 

authorized specifieally by the Governors including hiring and setting the 

compensation for the Postmaster General and Deputy Post master General. I 

understand that the service is hampered without independent board members, and 

actions may be legally challenged, but I am reluctant to delegate fiduciary duties of 

the Board to others. I believe Congress will act in the public interest to confirm 

Board members or change the structure. 

19. Recent reports by the USPS OIG have found instances where practices and procedures by 

postal employees and management did not uphold the reliability and integrity of the 

Postal Service's performance data, such as scanning mail as delivered even if it was not. 

What steps should the Postal Service take to help ensure the integrity of its service 

performance system? 

The Postal Service must act with integrity, reliability, and transparency. 

Expectations must be established, training provided, and supervision exercised to 

hold employees accountable for intentional or reckless errors. This is the 

responsibility of management, and the tone must be set at the top. The Board must 

evaluate management appropriately. 

20. As providers of vital services, many foreign nations' postal operators are required to 

meet well defined universal service obligations. The U.S. Postal Service has few 

mandated, measurable service standards. Are such standards needed in the U.S. and, if 

so, what steps would you take to being implementing them? 

Establishing standards and best practice procedures is essential for all enterprises. 

My limited research indicates that the United States Is a member ofthe Universal 

Postal Union and that the universal service standards are an essential mission of the 

Postal Service. 

Opioids 

21. Criminals are nsing the Postal Service as a means to distribute illegal narcotics, 

including deadly opioids, posing enormous risks to American citizens. This has put not 

just the lives of the users at risk, but also the lives of postal workers. Yet the sanctity of 

mail against government inspection has been a hallmark of postal policy, requiring search 

Senate Homeland Security and Governmental Affairs Committee Page21 
158 

warrants to allow law enforcement to open a mail item. Should law enforcement be 

given wider latitude to open suspicious mail items? How might privacy concerns be 

balanced against the need to protect public and worker safety? 

I am a strong supporter of the Fourth Amendment to the U.S. Constitution and 

believe in the sanctity of the mail against government inspection. I also recognize the 

risk to Postal Sen-ice employees and aU Americans. I believe latitude ewts to open 

suspicious mail under the egis of a valid search warrant insuring the recipient's 

constitutional right to privacy. I am open to further debate on expanding powers 

under court supen-ision. 

Wages and Benefits 

22. Postal Service is having difficulty recruiting younger workers. What might be done to 

change the image of working for the Postal Service? 

This·is a problem facing many employers in all sectors. While the MiUennlals are 

not monolithic, I generaUy believe that younger workers seek work-life balancing 

career opportunities that offer early advancement and professional development. 

Employers are expected to demonstrate a mission-driven purpose and a high level of 

work schedule flexibility to compete for top talent. To the extent that the 

organization can accommodate these requirements, the Postal Sernce should 

promote these values and actively recruit younger workers. 

V. Accountability 

23. What is your assessment of the oversight work performed by the Postal Service Office of 

Inspector General (USPS OIG) over the past decade? What do you view as the greatest 

challenges facing the USPS OIG? 

I do not have adequate information to assess the work of the Postal Service Office of 

Inspector General over the past decade. I strongly support the concept of Inspector 

Generals and consider the office necessary for management accountability and 

Congressional oversight. 

24. During your career, has your conduct as a federal employee ever been subject to an 

investigation or audit by an Inspector General, Office of Special Counsel, Equal 

Employment Opportunity Commission, Department of Justice, or any other federal 

investigative entity? If so, please describe the investigation or audit and its outcome. 

I am not aware of any investigation into my conduct as a special federal employee. 

Senate Homeland Security and Governmental Affairs Committee Page 22 
159 

25. During your career as a federal employee, have you ever declined to implement 

recommendations made by the Office oflnspector General, the Office of Government 

Ethics, the Office of Special Counsel or the GAO? If so, please describe the 

recommendations that were made and your reasoning for not implementing them. 

As a special federal employee, I was not responsible for implementing or declining 

to implement reeommendations made by an Inspeetor General, the GAO or office of 

Special CounseL I strictly adhered to all recommendations related to me 

individually by the Office of Government Ethics. 

26. If confirmed, do you pledge to implement recommendations made by the USPS OIG, 

Office of Government Ethics, the Office of Special Counsel and the GAO? 

I pledge to implement all reasonable recommendations made by USPS OIG, Office 

of Government Ethics, the Offiee of Special Counsel and the GAO. 

VI. Relations with Congress and the Public 

27. If confirmed, how will you make certain that you will respond in a timely manner to 

Member requests for information? 

I will respond in a timely manner to all Congressional requests using my personal 

knowledge. In some instances I will request staff support to answer more technical 

and complicated requests. 

28. If confirmed, do you agree without reservation to reply to any reasonable request for 

information from the Ranking Member of any duly constituted conunittee of the 

Congress? 

Yes 

29. If confirmed, do you agree without reservation to reply to any reasonable request for 

information from members of Congress? 

Yes 

30. If confirmed, do you commit to take all reasonable steps to ensure that you and your 

agency comply with deadlines established for requested information? 

Yes 

31. If confirmed, do you commit to protect subordinate officials or employees from reprisal 

or retaliation for any testimony, briefmgs or communications with members of Congress? 

Yes 

Senate Homeland Security and Governmental Affairs Committee Page 23 
160 

32. If confirmed, will you ensure that your staff will fully and promptly provide information 

and access to appropriate documents and officials in response to requests made by the 

Government Accountability Office (GAO) and the Congressional Research Service? 

Yes 

33. If confirmed, will you agree to work with representatives from this Committee and the 

GAO to promptly implement recommendations for improving the Postal Service's 

operations and effectiveness? 

Yes 

34. If confirmed, will you direct your staff to fully and promptly respond to Freedom of 

Information Act requests submitted by the American people? 

Yes 

35. If confirmed, will you ensure that political appointees are not inappropriately involved in 

the review and release of Freedom of Information Act requests? 

Yes 

36. If confirmed, will you direct your staff to adopt a presumption of openness where 

practical, including identifying documents that can and should be proactively released to 

the public without requiring a Freedom of Information Act request? 

Yes 

3 7. If confirmed, will you keep this Committee apprised of new information if it materially 

impacts the accuracy of information your agency's officials have proVided us? 

Yes 

VII. Assistance 

38. Are these answers completely your own? If not, who has provided you with assistance? 

Yes, they are completely my answers based on my personal knowledge and research. 

I reeeived clerical help from my personal assistants. 

Senate Homeland Security and Governmental Affairs Committee Page 24 
161 

39. Have you consulted with the Postal Service management or any other interested parties? 

If so, please indicate which entities. 

I had incidental c:ontac:ts with various USPS management officials, White House 

officials, and Postal Regulatory Commission officials c:onc:erning the nominating 

proc:ess and public:ally available information. I have not c:onsulted on specific issue 

to pies. 

I, 6DJ.f'Yf 111. D,....,t:>l".. , hereby state that I have read the foregoing Pre-Hearing 

Questionnaire and Supplemental Questionnaire and that the information provided therein is, to 

the best of my knowledge, current, accurate, and co111plete. 

( 

,~~ 

tgnature) · 

'2018 

Senate Homeland Security and Governmental Affairs Committee Page 25 
162 

Senator Rand Paul 

Post-Hearing Questions for the Record 

Submitted to Mr. Robert M. Duncan 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April IS, 2018 

On the Universal Postal Union and the international mail system: 

As you may know, international mail is exchanged and delivered under the auspices of a treaty 

known as the Universal Postal Union (UPU). Because of its status as a treaty, the U.S. 

Department of State is the lead agency involved in negotiating the terms of the UPU. 

Nevertheless, the members of the Board of Governors of the U.S. Postal Service (USPS) should 

at a minimum be aware of several issues of growing concern involving the UPU and 

international mail pricing, trafficking and security. 

To that end, please answer the following as completely as possible. 

I. Are you aware that under the UPU, the USPS is required to deliver foreign packages at 

rates lower than those available to domestic shippers? 

I am generally aware that treaty requirements mandate delivery of foreign packages 

at rates lower than those available to domestic shippers. I find this unacceptable and 

will ask that the agreements be reviewed and revised. 

2. Are you aware that under the UPU, foreign postal services are not required to follow the 

same customs and security processes that are imposed on other international shippers? 

I am generally aware that foreign postal services are not required to follow customs 

and security processes imposed on international shippers. I find this disturbing and 

a national security issue. I look forward to working with various stakeholders to 

remedy the situation. 

3. Are you aware of the Senate Permanent Subcommittee on Investigations (PSI) report 1 on 

vulnerabilities in the international mail system that concluded that "the federal 

government's policies and procedures are inadequate to prevent the use of the 

international mail system to ship illegal synthetic opioids into the United States"? 

I am generally aware of the PSI report on vulnerabilities and the inadequacies to 

prevent the use of international mail to ship illegal synthetic opioids into the United 

States. I find this appalling and will task management to make this a priority. 

1 hUos://www.hsgac.senate.gov/subcommittees/investigations/hearings/combatting-the-opioid-crisis-exploitingvu In era bi lities-in-i nte rnationa 1-m ail 
163 

4. Are you aware that that same Senate PSI report noted that, due to the customs and 

security exemptions under the UPU for foreign postal services, " ... 318,891,780 

packages entered the United States with no associated (advanced electronic data, or 

AED] on the sender's name and address, the recipient's name and address, or the contents 

of the package. With no AED, [Customs and Border Protection] was unable to target any 

of these packages for further inspection before they entered the United States." 

I am not specifically aware of the customs security exemptions. I find this 

unacceptable. 

5. If confirmed, will you commit to investigating these concerns, and to working with the 

U.S. Department of State to correct underpricing of international mail? 

If confirmed, I am committed to investigating the concerns in the four previous 

questions and committed to working with the U.S. Department of State to correct 

pricing disparities of international mail. I look forward to learning more from the 

Postal Service response. We must take action to keep our mail system safe. I will 

work with all stakeholder groups to correct these problems. 

On assessing the USPS' unfunded liabilities: 

As I mentioned in the hearing, I believe the Committee would benefit from regular updates on 

the financial condition of the USPS, including (as mentioned by Mr. Williams in his testimony) 

"decomposing" the agency's long-term liabilities into their respective elements and developing a 

plan to improve the management of those liabilities. 

I. Would you be supportive of efforts by the USPS Board of Governors to provide regular 

updates on the financial condition of the USPS to the Committee? 

I am committed to providing the Committee regular updates on the financial 

condition of the Postal Service. 

On overhead and labor costs: 

As I noted in the hearing, and as the USPS notes in its December 31, 2017 Form 10-Q filing2, the 

USPS's "costs are heavily concentrated in wages and benefits for both current employees and 

retirees." 

I. In your opinion, what is the role of the USPS Board of Governors in reviewing the 

percentage of operating expenses that are attributable to labor? 

The Board's role is setting strategic goals and overseeing these goals, including the 

budget process. I expect an analysis and breakdown of operating expenses and a 

2 http://about.usps.com/who-we-are/financials/financial-conditions-results-reports/fy2018-ql.pdf 
164 

comparison of best practices that lists labor expense ratios for postal systems in 

other countries, domestic competitors, and other quasi-governmental organizations. 

· "2·. Would you be supportive of efforts by the USPS Board of Governors to review and 

conduct comparative analyses of the labor costs of the USPS relative to both its 

competitors as well as other public enterprises (such as transit systems, foreign posts, and 

quasi-government agencies such as the Tennessee Valley Authority)? 

I support a thorough analysis of labor costs including comparisons to competitors 

and other government entities. 

On pricing and organizational transparency: 

I. Would you be supportive of efforts by the USPS Board of Governors to review how 

USPS accounts for and allocates its costs among its various lines of business? 

Specifically, would you support analyses designed to determine whether and to what 

degree USPS "monopoly" products may be cross-subsidizing its competitive (parcel 

delivery) products? Would you support making the results of these analyses available to 

members of Congress and the public? 

Yes, I support a cost allocation review and would make the analysis available to 

Congress and the public subject to proprietary information being reserved. 

2. Where appropriate and if necessary, would you be willing to assist members of Congress 

in seeking additional information from the U.S. Postal Service on behalf of their 

constituents? 

I am willing to assist Congress in seeking additional information on behalf of 

constituents subject to proprietary information being reserved. 
165 

Ranking Member Claire McCaskill 

Post-Hearing Questions for the Record 

Submitted to the Mr. Robert M. Duncan 

Nominations of Honorable David C. Williams, Calvin Tucker, 

And Robert M. Duncan to be Governors, U.S. Postal Service 

April18, 2018 

EMPLOYEE ISSUES 

Q. Please list any federal holidays that you have required your employees to work, despite 

the bank being closed to customers for the day. 

The Federal Reserve recognizes ten holidays each year. Banks are not required to observe 

any of the ten days. The Inez Deposit Bank is closed on six of the ten days: New Year's Day, 

Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. 

Internally, we refer to these as the mandatory holidays. The bank has limited customer 

service on three days: Martin Luther King Jr. Day, Columbus Day and Veterans Day. 

Limited service days consist of drive up service and lobby and loan service by appointment. 

The bank is totally closed to customers on President's Day, and all staff is required to 

attend mandatory compliance and security training as well as management updates. In 

addition to limited service and banking by appointment on Martin Luther King Jr. Day, all 

staff works on records and retention, year-end close out projects and organizing the 

workplace for the coming year. 

Q: Please explain why you required your employees to work on these holidays, and your 

reasoning for choosing these particular federal/bank holidays and not others. 

Employees are required to work on President's Day to receive mandatory training 

required by various federal banking regulations and for internal communications purposes 

such as communicating the strategic plan and employee awards. President's Day is near the 

beginning of the year in February and coincides with having our official financial numbers 

for the previous year. Martin Luther King Jr. Day was chosen for limited service and work 

on records retention, closing out issues from the previous year, and organizing the 

workplace for the coming year. It was chosen because of its proximity to the previous year. 

The limited service days were chosen to conform to local banking patterns, particularly for 

retail commercial accounts. 
166 

POST OFFICE CLOSINGS AND SERVICE CUTS 

Q: Do you support making cuts to USPS mail delivery service or the number of delivery 

days? Why or why not? 

The Postal Service should remain flexible in identifying and executing the time and 

frequency of postal services and delivery to better serve customers. 

Q: What impact do you think cutting mail delivery service or closing post offices will have 

on rural communities in particular? 

In many instances, the post office is the community center and social hub in rural 

communities. Rural communities are more likely to be disadvantaged in access to alternate 

retail channels and proximity to the next-closest postal facility. 

The Postal Service has had to deliver to more addresses every year, but is handling less mail. 

The explosive growth in packages has not come close to filling the void left by declining first 

class mail volumes. 

Q: What steps can the Postal Service take to ensure that it meets its universal service 

obligation, especially in rural America, while also becoming financially self-supporting? 

The extensive network operated by the Postal Service is a competitive advantage and 

obligation. The universal service obligation can be used to leverage the extensive network 

making sure all citizens have effective and efficient service. I encourage management to 

look for strategic partnerships to better utilize Postal assets. 

ROLE OF THE USPS BOARD OF GOVERNORS 

Q: How do you view the postal service- as a service available to every constituent in the 

country or as a business that must be profitable despite obligations that no private 

company faces? 

Both. The Postal Service is a hybrid institution and must be recognizes as both. On the one 

hand the Postal Clause in Article 1, Section 8, Clause 7 of the U.S Constitution empowered 

Congress to "establish post offices and post roads." Today, the universal service standard is 

an essential mission of the Postal Service and assists in "binding the nation together." On 

the other hand, 39 U.S.C. Section 201 provides the Postal Service is an "independent 

2 
167 

establishment of the executive branch." This means the Postal Service is a self-supporting 

agency that is designed to cover its operating costs by generating revenue through the sale 

of postage and related products and services. 

POSTAL SERVICE FINANCES 

Q: Are there provisions of the P AEA that Congress should consider changing to help 

improve the Postal Service's ongoing financial viability? 

The funding requirement in the Postal Accountability and Enhancement Act of 2006 

creates difficulties in the Postal Service's ability to invest in the future and foster long term 

financial viability. It is premature for me to be prescriptive for Congress action until I have 

more information. 

Q: Are you aware of the restructuring that the Postal Service has undergone recently, and if 

so, can you briefly describe some of its recent cost-cutting measures? 

I am generally aware of cost cutting efforts since 2012 resulting in tbe reduction of hours at 

some facilities and reduction in backroom operation's capacity. I am personally aware of 

reductions of service standards. Recently, I received a properly addressed first class letter 

that took twelve days to travel approximately 150 miles. 

Q: Could you give a few examples of what additional restructuring of the Postal Service's 

business model you would suggest? 

My approach to additional restructuring of the Postal Service's business model centers on 

being agile, aggressive, and accountable. The Postal Service should be agile and flexible in 

developing new business products and programs as well as in identifying and executing the 

standards and frequency of postal services and delivery. The Postal Service should be 

aggressive in implementing policies and initiatives that foster innovation, meet the 

numerous challenges ahead, and take advantage of the great opportunities in e-commerce 

and package delivery. Finally, the Postal Service should be accountable with a focus on 

'tra'nsparency and responsiveness and regular Board over- sight and evaluation. 

POSTAL REFORM LEGISLATION 

Q: Where do you see the Postal Service in 10 or 20 years? 

The future of the Postal Service will be determined by agile, aggressive, and accountable 

management. The use of technology offers opportunities to enhance and leverage the "last 

mile delivery" of mail and other products. The Postal Service employees and infrastructure 

are the greatest assets. I envision postal facilities delivering high tech, high touch products 

including imaging and manufacturing materials. The facilities will deliver additional 

government services for benefits and initial agency contacts. The amount of information 

3 
168 

generated by the postal system is valuable and will help determine future products and 

se.J;Vices. I'm optimistic about the future of the Postal Service, but survival requires a high 

level of cooperation among the stakeholder groups. 

EXECUTIVE ORDER ON POSTAL REFORM 

Last week, the President issued an executive order establishing a commission to examine postal 

reform. The Treasury Secretary was selected to head the commission, but curiously, the Postal 

Service is not represented, nor are any stakeholders like unions, big mass mailers, or Members of 

Congress whose constituents are going to be directly affected by the Commission's findings. 

Q: If confirmed, how will you ensure that the Postal Service is adequately represented in the 

Commission's deliberations and conclusions? 

If confirmed in the next few weeks, I will encourage the new Board to petition the Treasury 

Secretary to add our newly elected Chairman to the Commission. The Postal Service can 

best serve the Commission and nation by providing accurate information and analysis 

during the process. 

INTERNATIONAL MAIL 

We nave a huge, complex problem right now with illicit opioid manufacturers in China using the 

Postal Service to deliver fentanyl in small packages to the U.S. The Postal Service currently 

receives about I million packages per day, mixed in with millions of pieces of international letter 

mail. By contrast, UPS handled 3 million international packages total in 2017. And the Postal 

Service does not control the data associated with these packages from start to finish the way that 

FedEx and UPS do. Making things even more difficult, the Postal Service is bound by treaty 

obligations that the express shippers do not have to deal with. All of which makes finding a 

solution to this problem extremely complicated. But it's one that we must solve. We need to 

find ways to improve data collection and screening capabilities. 

Q: If confirmed, will you take some time to get up to speed on the issue and present some 

formal recommendations and a path to start to resolve this issue? 

If confirmed, I will review issues related to international mail and task management with 

making formal recommendations to help resolve the issues. I am personally aware of the 

need to keep dangerous materials out of the mail system. 

4 
169 

Senator Tom Carper 

Post-Hearing Questions for the Record 

Submitted to Mr. Robert M. Duncan 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April 18, 2018 

I. In 2017, the independent Postal Regulatory Commission (PRC) found that parcels contributed 

$7 billion more in revenue to the Postal Service than they cost to process deliver. In fact, 

according to PRC calculations, the share of institutional costs covered by competitive products 

has quadrupled over the last decade. This tells me that these products are not being 

subsidized, as has been suggested. Instead, parcels appear to be extremely profitable for the 

Postal Service and are helping defray the cost of universal mail service. I believe that growing 

parcel revenues helps to stabilize the Postal Service's finances and protects the Postal 

Service's ability to meet the obligation we place on it to deliver First Class Mail and other 

products to every address in the country. 

What are your views on this issue? Given the universal service obligation and the growing 

cost of Postal Service liabilities, what would you propose that the Postal Service do to make 

its package products more competitive and more profitable? 

I believe that the Postal Service must provide value for customers at a price they can 

afford. A competitive price structure will allow the Postal Service to continue to grow its 

market share. The universal service obligation assures all customers will receive fair and 

competitive pricing of products. The last mile delivery of the Postal Service is a 

competitive advantage for the Postal Service, but should not be priced to encourage 

other market entrants thus driving down Postal Service volume. Most businesses face 

similar concerns of over- pricing or underpricing and the market makes the final 

decision. 

2. The Postal Service's affordable delivery of packages is an economic lifeline to many 

Americans. I am concerned that any effort to make the Postal Service charge more for 

package delivery will harm, not help, small businesses and consumers, especially rural 

businesses and consumers who may not have access to any affordable alternatives. Can 

you speak to your commitment to ensuring rate stability and predictability when it comes 

to the Postal Service's package products? Do you agree it is essential to preserve 

universal access to affordable package delivery services 

I believe price stability is essential in a well-managed organization. It allows 

customers to plan and price accordingly. Price stability is important for small 

businesses to compete, and I would look very carefully at significant changes. 
170 

Universal service helps communities underserved by commercial carriers to 

compete by maintaining reasonable prices. 

3. As you know, the Board of Governors has been completely vacant since the end of2015 

and without a quorum since 2014. If confirmed, what steps will each of you take to 

evaluate the status of the Postal Service and the steps that need to be taken in the coming 

months to address both its short-term and long-term financial challenges? Given that no 

single part-time governor can possibly focus on everything, what will your main areas of 

interest be? 

My focus as a Postal Board Governor will be examining the business model and 

strategic plan for the organization particularly as it relates to the well-known 

financial problems. I will also pay close attention to the level of transparency and 

cooperation with Congress, the PRC, postal workers, and other stakeholders. In 

addition, I listed several areas of anticipated concern in my prepared statement: 

Governance Structure, Universal Service, Delivery Frequency, Delivery Standards, 

Change in Rates, Rural Service, and Transportation of Opioids. 

4. As you know, the Board of Governors is charged with hiring and overseeing the work of 

the postmaster general and other senior postal managers. If confirmed, what steps will 

you take to evaluate the team in place today? Going forward, what qualities would you 

look for when looking to fill key positions? 

If confirmed, I will review the contracts of the Post Master General and Deputy Post 

Master General along with their stated goals and objectives and evaluations for the 

past few years. I will interview and evaluate the two top leaders to discuss their 

views on leadership and management focusing on "tone at the top" issues of 

cooperation and transparency with emphasis on the Postal Service culture. 

In filling key Postal Management positions, I will look for vision, proven leadership, 

flexibility, communication skills and passion for the job. Proven leadership in 

leading and managing complex organizations is essential whether the leader is an 

external or internal candidate. The ability to adapt and innovate is critical in 

today's environment. Great leaders must have a vision of how to make the 

organization thrive and the passion to execute their visionary plans. They must 

know how to communicate their vision to all stakeholders and how to manage 

people and projects for success. 
171 

Testimony before the United States Senate Homeland Security and Government Affairs Committee for 

Calvin Tucker, Nominee 

To Be A Member of the U.S. Postal Service Governing Board 

April18, 2018 

Good morning Chairman Johnson, Ranking Member McCaskill and Members ofthe Committee. 

It is my pleasure to be before you today. I want to thank President Donald J. Trump for his 

decision to nominate me to become a member ofthe United States Postal Service's Board of 

Governors. I am honored and humbled by the confidence and trust that President Trump has 

placed in me. 

I also want to thank my wife, Sharon, who is here with us today, and my family, 

represented today by my two sons, Aaron and Bradley. Those who could not join us include my 

daughter, Sheneen, my granddaughter, Amaya, and my mother, Emma. I want to thank them 

all for their support in this endeavor, and in everything we have accomplished as a family. 

Over the 43 years of my professional life, I have served in various capacities at diverse 

organizations. These include Eagles Capital Advisors (a small minority management and 

financial consulting firm); Advance Bank (a minority financial institution); United Bank of 

Philadelphia (a minority financial institution); Milligan & Associates (A minority accounting and 

consulting firm); GMAC Commercial Mortgage Corporation (an international mortgage banking 

firm); Resolution Trust Corporation (a federally-chartered corporation established by Congress 

Page 1 of4 
172 

in 1989 under the Financial Institution Reform and Recovery Act), as well as other businesses 

and financial institutions. 

I have also had the privilege to serve on numerous community boards, such as: Habitat 

for Humanity of Philadelphia; African American Chamber of Commerce of Philadelphia and 

Vicinity; Commonwealth of Pennsylvania/ Philadelphia County Board of Public Assistance; 

Presbyterian Children Village; Paul Roberson House; Urban Financial Services Coalition and 

Community Capital Works, just to name a few. 

From a career mostly in small to medium-size businesses and my advocacy through 

non profits, I truly appreciate the needs oft hose communities. If confirmed, I will bring that 

knowledge and perspective to help the U.S. Postal Service better focus on the needs of small 

business and community groups. For example, in my consulting practice, many of my small 

business clients are single operators who struggle with the day-to-day responsibilities of making 

their enterprises a success. My clients will typically ask questions like, who will help them with 

marketing, sales or simply getting their product to their customers? So, can the Postal Service 

simplify shipping options so that these businesses owners have one less thing to worry about? 

Are we doing enough to support the non-profit community and the good work they do? What 

can we do to better support small business partners who lack the expertise and resources 

available to bigger business? If I'm confirmed, these are the types of questions I will bring to 

the table, and I will work with the small business community, postal management and other 

stakeholders to ensure that small and medium-sized businesses and the customers they serve 

are well represented at the Postal Service. 

Page 2 of 4 
173 

Today, more than ever, I believe that it is essential that the Postal Service genuinely 

consider this small business perspective. As larger companies shift out of mail in favor of 

digital, mom-and-pop businesses still need innovative communication solutions. For example, a 

small neighborhood accounting business may struggle with a digital advertising campaign, so a 

mail-based, local solution might appeal to them. Are we doing everything we can to make that 

the easy and cost-effective solution? A rural farmer may not have access to broadband, but she 

should always be able to count on the regular delivery of mail. Are we devoting the resources 

and attention that rural postal customers deserve? 

While my experience and expertise is in the small business community, I also appreciate 

how the Postal Service is an integral part of our nation's economic system. From the smallest 

to biggest business, from our most populated cities to the most sparse rural area, from the 

richest to the poorest, the Postal Service provides an essential public service without playing 

favorites. Every day it delivers mail to more than 156 million homes and businesses, made 

possible through the work of more than 640, 000 hardworking and dedicated employees. If I'm 

confirmed, I will work with my fellow Board members and other stakeholders to ensure that 

the Postal Service continues to be a significant economic engine for the American people. 

I am mindful, however, that over the last 11 years, the Postal Service has faced very 

significant challenges. These include tremendous financial losses, growing debt, and a decline 

of its most profitable product, First-Class Mail. If confirmed, I will use all of my energy and 

experience to help find solutions to these challenges. 

Page 3 of4 
174 

The solution, I believe, will be found by utilizing the Postal Service's strengths. It has 

faithfully served as the link connecting Americans through daily delivery and its network of 

approximately 31,000 Post Offices. It has a dedicated and knowledgeable workforce, and it 

was, in fact, the first Social Media Network. If we can leverage those strengths and adapt to the 

new needs and circumstances, I believe the Postal Service can continue to play its vital and 

necessary national role. While I do not claim to have all the answers, if confirmed, I pledge to 

bring my perspective and experience, work openly with my fellow Governors, listen closely to 

all stakeholders, and always remember the tremendous responsibility I have been given. 

Thank you, Chairman Johnson, Ranking Member McCaskill and members of the 

Committee for giving me the opportunity to present this testimony to you. I look forward to 

any questions that you may have. 

Page 4 of4 
175 

REDACTED 

HSGAC BIOGRAPHICAL QUESTIONS FOR 

EXECUTIVE NOMINEES 

1. Basic Biographical Information 

Please provide the following information. 

October 26, 2017 

(None) 

1 
176 

1952 

Married 

liD 

First Name .Middle Name 

Sharon Ellen 

Separated 

D 

Irving 

Memphis, Tennessee 

Annulled Divorced 

April 1957 

2 

Widowed 

D 

May 1976 
177 

Sheneen Nicole Tucker/Brockington 

Aaron Calvin Ray Tucker 

Bradley Ray Tucker 

2. Education 

List all post-secondary schools attended. 

Tyqe of School Date Began Dilte .. Ended 

scliool Date Name o[c (vocationalltecftnicall!iitoe·school, School (month/year)' (check collegeluniveisltyiJniliuiry college, (nibntfl/year) Deg<u . Awarde . school' ' -.-.~ .. cotrespOndenceldiStancefc;;xtensiQn/onl!he 

school) 

_ (check 

eStimate) 

box If ( cheCk·•·pfeS~ni" 

box· if estiffiate) 

box ~ 

if.siilt in school). '. E•r 

00 Preunl "'' 

Pierce College January 1970 ll1l , May 1972 Esr E" ll1l Present 

Temple University June 1972 ll1l , August 1972 

E•< £•t 

Lincoln University ll1l P'tescnl May Sept. 1972 ll1l , BSBA 

May:1975 1976 

E" E•< 

LaSalle University ll1l Present 

Sept. 1976, ll1l , May 1978 

3. Employment 

(A) List all of your employment activities, including unemployment and self-employment. 

If the employment activity was military duty, list separate employment activity periods to 

show each change of military duty station. Do not list employment before your 18th 

birthday unless to provide a minimum of two years of employment history. 
178 

Tyl!e ofEm!!loyment 

(Active Military Duty Date Station, National 

Guard/Reserve, USPHS Employme 

Com111jssioncd Corps, Date ntEndcd 

Other Federal employment. Name of Your EmJlloyment Most Recent Location (month/ycor) 

State Government (Non- Employer/ Position (City and Began (check bo< if 

Federal Employment), Self· Assigned Duty Title/Rank State only) (month/year) estimate) 

employment. Station (check box if (check 

Unemployment, Federal cstim·atc) "present" box 

Contructor, Non- if still 

Government Employment employed) 

(excluding selfemployment), Olher 

Estll!l Present Est 

Eagles Capital Managing Philadelphia, ll!l Self-Employment May 2009 

Advisors LLC Partner PA 

Estll!l Estll!l 

Non-Government Advance Bank Vice President Philadelphia, April2004 May 2009 

Employment PA E:stOO Estll!l 

Non-Government United Bank of Vice President Philadelphia, April2003 April2004 Employment PhiladelPhia PA 

EstOO Estl&:l 

Non-Government C.R.Tucker Financial & Philadelphia, January 2002 February 

Employment Associates Management PA 2003 

Consultant 

Estll!l EstOO 

Non-Government Milligan & Director of Philadelphia, February 2001 September 

Emolovment Company, LLC Marketing PA 2002 

Est!BJ EstOO 

Non-Government GMAC Vice President Horsham, August 1997 November 

Employment Commercial PA 2000 

Mortgage Corp., 

USA and Canada 

Estll!J EstOO 

Non-Government International President Wyndmoor, May 1996 August 1997 

Employment Mailing PA 

Technoloales Inc 

F..stiE EstOO 

Government Resolution Trust Director Valley June 1990 May 1996 

Emolovment Com oration Forqe PA 

EstOO EstOO 

Non-Government Sears Mortgage Senior King of February 1990 May 1990 

Employment Corporation Mortgage Prussia, PA 

Officer 

EstOO Es100 

Non-Government Mortgage Vice President Philadelphia, March 1989 February Employment Makers Inc. PA 1990 

Fort EstOO EstOO 

Non-Government Margaretten & Mortgage Washington, September March 1989 

Comoanv Officer PA 1988 

Estr&l Est[EJ 

Non-Government Home Unity Assistant Vice Blue Be!!, PA July 1985 August 1988 

4 
179 

Employment Mortgage President 

Services Inc 

Eslllll Estill! 

Non-Government Leevy Redcross Senior Philadelphia, August 1984 July 1985 

Employment and Company Business PA 

Analyst Estill! Estill! 

Non-Government C.R:Tucker Business Philadelphia, January 1980 August 198~ 

Employment Associates Consultant PA Estill! Estill! 

Non-Government Council for Labor Account Philadelphia, August 1978 December 

Employment & Industry Manager/ PA 1979 

Economic 

Development 

Specialist Estill! Estllil 

Non-Government Latimer & Buck, Mortgage Philadelphia, June 1976 August 1978 

Employment Inc Portfolio PA 

Manager 

(B) List any advisory, consultative, honorary or other part-time service or positions with 

federal, state, or local governments, not listed elsewhere. 

DateServlce Date Service Ended 

Name of Position Began : (morithlyeai)(i:hcc< box Name of Government Entitt (month/year) if estimate) (chcc~ 

(chcclc,boxJf up resent" box if st.iJI 

estimate) servi"'!) 

Estill! Estllll 

U.S. Treasury Department/ Reader/Consultant March 2006u March 2007 Community Development Financial 

Institution Fund 

4. Potential Conflict oflnterest 

(A) Describe any business relationship, dealing or financial t.-ansaction which you have had 

during the last I 0 years, whether for yourself, on behalf of a client, or acting as an agent, 

that could in any way constitute or result in a possible conflict of interest in the position to 

which you have been nominated. 

None. 

(B) Describe any activity during the past I 0 years in which you have engaged for the 

purpose of directly o.- indirectly influencing the passage, defeat or modification of any 

legislation or affecting the administration or execution oflaw or public policy, other than 

while in a federal government capacity. 

5 
180 

None. 

5. Honors and Awards 

List all scholarships, fellowships, honorary degrees, civilian service citations, military 

medals, academic or professional honors, honorary society memberships and any other 

special recognition for outstanding service or achievement. 

List ofspecial recognition for outstanding service or achievement: 

1. Resolution Trust Corporation, Special Achievement Award, Sept. 1993, Dec. 1993, Jan. 1995, and 

Oct. 1995. 

2. Resolution Trust Corporation, Certificate of Appreciation, Dec. 1995. 

3. Philadelphia Metropolitan Board of Realist, Certificate of Appreciation Award, Feb. 2008. 

4. National Association of Real Estate Brokers, Appreciation Award, Oct. 1991. 

5. African American Chamber of Commerce, Distinguished Service Award, Dec. 2004. 

6. Habitat for Humanity of Philadelphia, Special Appreciation Award, 2007. 

7. Germantown Republican Oub, William J. Mclaughlin Award, Feb. 2015. 

8. Mayor of Philadelphia, James F. Kenney, Citation for Social & Civic Contribution, October 2016. 

9. Certificate of Special Congressional Recognition, Representative Bob Brady, April 2016. 

6. Memberships 

List all memberships that you have held in professional, social, business, fraternal, 

scholarly, civic, or charitable organizations in the last 10 years. 

Unless relevant to your nomination, you do NOT need to include memberships in 

charitable organizations available to the public as a result of a tax deductible donation of 

$1,000 or less, Parent-Teacher Associations or other organizations connected to schools 

attended by your children, athletic clubs or teams, automobile support organizations (such 

as AAA), discounts clubs (such as Groupon or Sam's Club), or affinity 

memberships/consumer clubs (such as frequent flyer memberships). 

Name of,Ot,gnnization, Dates of Your MembershiJ! PoslttouMHeld, (You inay approxhnate.) 

Vesperaub 2005 to 2014 Member 

Pennsylvania Society 2010 to present Member 

Alpha Phi Omega 1975 to present Member 

6 
181 

52"' Street Business Association 2005 to 2007 VIce President 

African American Chamber of 2006 to 2008 Board Member 

Commerce 

Republican National Committee/ 2012 and 2016 National Delegate 

Pennsylvania State Republican 

Partv 

Pennsylvania State Republican 2012 to present State Committeeman 

Party 

Philadelphia Republican Party 2010 to present Ward Leader 

10. Political Activity 

(A) Have you ever been a candidate for or been elected or appointed to a political office? 

Name of Office 

Pennsylvania State Representative 

. Elected/Appointed/ 

Candidate Only 

Candidate Only 

Xim•·<sll;;lcdiolr 

· · iiiii!J,of 

atinolniincnt . Made ·· 

1980 

Term of.Servlce . 

(if applicable) . 

, N/A 

(B) List any offices held in or services rendered to a political party or election committee 

during the last ten years that you have not listed elsewhere. 

~ame·of Partt!Eiection Office/Services Rendered Besptmsibilitles :Da.tes:ol\ 

Committee .Se•·vtce - Philadelphia Republican City Assistant Treasurer Campaign Reporting 2015 

Committee 

Germantown Republican Club President Leadership 2013 

Pennsylvania/Philadelphia Chairman Leadership 2011 

Black Republican Council 

Donald J. Trump for Pennsylvania Media Representation of April/May 

President Surrogate candidate to public and 2016 

media through 

Nov. 2016. 

7 
182 

(C) Itemize all individual political contributions of $200 or more that you have made in the 

past five years to any individual, campaign organization, political party, political action 

committee, or similar entity. Please list each individual contribution and not the total 

amount contributed to the person or entity during the year. 

Nam~ 11f Recil!ient Amount Year of Contribution 

Pennsylvania Republican Party-Commonwealth Club $1,000 2015 

Pennsylvania Republican Party-Commonwealth Club $1,000 2016 

Pennsylvania Republican Party-Commonwealth Club $840 2017 

ll.Publicafions and.Speeches 

(A) List the titles, publishers and dates of books, articles, reports or other published 

materials that you have written, including articles published on the Internet. Please provide 

the Committee with copies of all listed publications. In lieu of hard copies, electronic copies 

can be provided via e-mail or other digital format. 

Title Publisher . Date{s) ofPUblicalion 

The Fundamentals of Business WPFSI-ON LINE * January 2014 (Est.) 

Credit 

The Pitfalls of Predatory Lending WPFSI-ON LINE December 2013 (Est.) 

Reviewing Your Business WPFSI-ON LINE February 2014 (Est.) 

Performance: 12 Key Financial ' 

Metrics 

What is Working Capital and WPFSI-ON LINE March 2014 (Est.) 

Why is it Important for a 

Business to Understand its 

Worklnq Capital Position 

What Is An Operating Cycle in a WPFSI-ON LINE · April2014 (Est.) 

Business 

Business Planning-Lifeblood of WPFSI-ON LINE November 2013 (Est.) 

Diverse Business Growth 

Co-Host Radio Show "There's WFSI on WURD Radio 900 AM Various shows from December 

Money Out There" and 96.1 FM 2015 to October 2017 (Est.) 

[see mp3s attached] 

A Guide to Business Assistance Council for Labor and 1980 (Est.) 

in Philadelphia Industry (The City of 

8 
183 

* All WPFSI-QN LINE programs are available at 

l1lt11s:/lwurdtadio,l3ox.toh1[s/Bktr2ebs90iOlcudqwbbg21tzpyaoidu 

(B) List any formal speeches you have delivered during the last five years and provide the 

Committee with copies of those speeches relevant to the position for which you have been 

nominated. Include any testimony to Congress or any other legislative or administrative 

body, These items can be provided electronically via e-mail or other digital format. 

Titletrol!ie Place/Audience Date{s} of SJjeech 

Various Business and Political Philadelphia, PA Various. Not relevant to the position 

Speeches that I have been nominated to. I 

have no formal recording or records 

of these speeches. 

(C) List all speeches and testimony you have delivered in the past ten years, except for 

those the text of which you are providing to the Committee. 

Title Place/Audience Date(s} ofSI!eech 

N/A 

12.Criminallfistory 

Since (and including) your 18" birthday, bas any of the following happened? 

Have you been issued a summons, citation, or ticket to appear in court in a criminal proceeding against you? 

(Exclude citations involving traffic infractions where the fine was less than $300 and did not include alcohol or 

drugs.). 

No. 

Have you been aiTested by any police officer, sheriff, marshal or any other type of law enforcement official? 

No. 

Have you been charged, convicted, or sentenced of a crime in any court? 

No. 

9 
184 

Have you been or •rc you currently on probation or parole? 

No. 

Are you currently on trial or awaiting a trial on criminal charges? 

No. 

To your knowledge, have you ever been the subject or target of a federal, state or local crimina I investigation? 

No. 

If the answer to any of the questions above is yes, please answer the questions below for 

each criminal event (citation, arrest, investigation, etc.). If the event was an investigation, 

where the question below asks for infor~ation about the offense, please offer information 

about the offense under investigation (if known). 

Not Applicable. 

A) Date of offense: 

a. Is this an estimate (Yes/No): 

B) Description of the specific nature of the offense: 

C) Did the offense involve any of the following? 

I) Domestic violence or a crime of violence (such as battery or assault) against your child, dependent, 

cohabitant, spouse, former spouse, or someone with whom you share a child in common: Yes I No 

2) Firearms or explosives: Yes I No 

3) Alcohol or drugs: Yes I No 

D) Location where the offense occurred (city, county, state, zip code, country): 

E) Were you arrested, summoned, cited or did you receive a ticket to appear as a result of this offense by any 

police officer, sheriff, marshal m· any other type of law enforcement official; Yes/No 

I) Name of the law enforcement agency that arrested/cited/summoned you: 

2) Location of the law enforcement agency (city, county, state, zip code, country): 

F) As a result of this offense were you charged, convicted, currently awaiting trial, and/or ordered to appear in 

court in a criminal proceeding against you: Yes I No 

I) If yes, provide the name of the court and the location of the court (city, county, state, zip code, 

country): 

10 
185 

2) If yes, provide all the charges brought against you for this offense, and the outcome of each charged 

offense (such as found guilty, found not-guilty, charge dropped or "riolle pros," etc). If you were found 

guilty of or pleaded guilty to a lesser offense, list separately both the original charge and the lesser 

offense: 

3) If no, provide explanation: 

G) Were you sentenced as a result of this offense: Yes I No 

H) Provide a description of tlte sentence: 

1) Were you sentenced to imprisonment for a term exceeding one year: Yes /No 

J) Were you incarcerated as a result of that sentence for not less than one year: Yes I No 

K) If the conviction resulted in imprisonment, provide the dates that you actually were incarcerated: 

L) If conviction resulted in probation or parole, provide the dates of probation or parole: 

M) Are you currently on trial, awaiting a trial, or awaiting sentencing on criminal charges for this offense: Yes I 

No 

N) Provide explanation: 

11 
186 

13. Civil Litigation and Administrative or Legislative Proceedings 

(A) Since (and including) your 18th birthday, have you been a party to any public record 

civil court action or administrative or legislative proceeding of any kind that resulted in (1) 

a finding of wrongdoing against you, or (2) a settlement agreement for you, or some othet 

person or entity, to make a payment to settle allegations against you, or for you to take, or 

refrain from taking, some action. Do NOT include small claims proceedings. 

J:!are Claim/Suit 

Was Filed or_ Name(s} ofl'rlnell!al Nature of Action/ 

Phiceedlngs 

tegistalive Court' Nonie. Parties 

Actiori/Proceedinll 

Involved in -- :Proceeding - Action/Proceeding ~ 

Began 

11/12/2002 Municipal Court University Landlord -Tenant Paid and dismissed 

Philadelphia & Commons/ PA State 

District College and Aaron 

Magistrate Tucker 

Court 

2/8/2001 Municipal Court Napoleon Vaughn Disputed Doctor's satisfied and 

and Aaron Tucker Bill dismissed 

(B) In addition to those listed above, have you or any business of which you were an officer, 

director or owner ever been involved as a party of interest in any administrative agency 

proceeding or civil litigation? Please identify and provide details for any proceedings or 

civil litigation that involve actions taken or omitted by you, or alleged to have been taken or 

omitted by you, while serving in your official capacity. 

No, but in my professional capacity, I was called as a witness in a criminal proceeding. 

Date. 

_CiahiiJSuit 

was Filed. 

9/29/2014 

Court Name, 

United States 

District Court 

Nanili(s) or· 

Prineipai Parties 

_·In-_,oi':ed ir>, 

Action/Proceeding 

United States V 

Eric SIJohn 

Brown, Et AI. 

12 

Nature of Action/Proceeding , Rei!ulu ~r 

Action!Pr~ceeding 

Subpoena to testify Conviction of 

Defendants 
187 

(C) For responses to the previous question, please identify and provide details for any 

proceedings or civil litigation that involve actions taken or omitted by you, or alleged to 

have been taken or omitted by you, while serving in your official capacity. 

As a result of my lending role with Advance Bank, Philadelphia office, I was subpoena to testify at a 

hearing or trial in a criminal case of United States of America V. Eric SIJohn Brown, Et AI. Mr. Brown 

was a borrower at Advance Bank where he was alleged to have falsified records to induce the bank 

to lend him money. I was called as witness for the United States. · 

14. Breach of Professional Ethics 

(A) Have you ever been disciplined or cited for a breach of ethics or unprofessional conduct 

by, or been the subject of a complaint to, any court, administrative agency, professional 

association, disciplinary committee, or other professional group? Exclude cases and 

proceedings already listed. 

No. 

Name or 

AgencW:AssoCiatlon/ 

ConniiltteetGroug 

N/A 

Describe Citation/Disciplinary · 

Action/complaint '· Results Of Disciplinary 

Actlon/Ciniiplaint 

(B) Have you ever been fired from a job, quit a job after being told you would be fired, left 

a job by mutual agreement following charges or allegations of misconduct, left a job by 

mutual agreement following notice of unsatisfactory performance, or received a written 

warning, been officially reprimanded, suspended, or disciplined for misconduct in the 

workplace, such as violation of a security policy? 

No. 

15. Tax Compliance 

(This information will not be published in the record of the hearing on your nomination, 

but it will be retained in the Committee's files and will be available for public inspection,) 

REDACTED 

13 
188 

13. Lobbying 

In the past ten years, have you registered as a lobbyist? If so, please indicate the state, 

federal, or local bodies with which you have registered (e.g., House, Senate, California 

Secretary of State). 

No. 

14. Outside Positions 

1K1 See OGE Form 278. (If; for your nomination, you have completed an OGE Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check the box here to 

complete this section and then proceed to the next section.) 

For the preceding ten calendar years and the current calendar year, report any positions 

held, whether compensated or not. Positions include but are not limited to those of an 

officer, director, trustee, general partner, proprietor, representative, employee, or 

consultant of any corporation, firm, partnership, or other business enterprise or any nonprofit organization or educational institution. Exclude positions with religious, social, 

fraternal, or political entities and those solely of an honorary nature. 

Name.of 

O~n 

Address of 

Ort!&niZ..tlon 

Type of 

Organization 

( corpo~t~on, nrm, . paitne.rstlip, o~er 

·business enterprise, Position Held 

other .non~profit 

Organization, 

eduCational 

institUtion) 

. PO.ition Held 

From 

(month/year) 

15. Agreements ot· Arratigements 

Positio~ 

Held To (monthly~ilt) 

[81 See OGE Form 278. (If, for your nomination, you have completed an OGE Form 278 

Executive Branch Personnel Public Financial Disclosure Report, you may check the box here to 

complete this section and then proceed to the next section.) 

As of the date of fLiing your OGE Form 278, report your agreements or arrangements for: 

(I) continuing participation in an employee benefit plan (e.g. pension, 40lk, deferred 

compensation); (2) continuation of payment by a former employer (including severance 

payments); (3) leaves of absence; and (4) future employment. 

16 
189 

Provide infonnation regarding any agreements or arrangements you have concerning (1) 

future employment; (2) a leave of absence during your period of Government service; (3) 

continuation of payments by a former employer other than the United States Government; 

and (4) continuing participation in an employee welfare or benefit plan maintained by a 

former employer other than United States Government retirement benefits. 

Status and Terms of Ani 

Aareement !!!!£ or Arranaement Parties (month/year) 

16. Additional Financial Data 

AU information requested under this heading must be provided for yourself, your spouse, 

and your dependents, (This information will not be published in the record of the hearing 

on your nomination, but it will be retained in the Committee's files and wiD be available for 

public inspection.) ' 

REDACTED 
SIGNATURE AND DATE 

I hereby state that I have read the foregoing Statement on Biographical and Financial Information and that the info

provided therein is, to the best of my knowledge, current, accurate, and complete. 

~te_-~ 

This I r day of II , 20 I 7 

24 
191 

UNITED STATES OFFICE OF 

GOVERNMENT ETHICS 

~EDACTED 

* ------------------------------

The Honorable Ron 1 ohnson 

Chairman 

Committee on Homeland Security 

and Governmental Affairs 

United States Senate 

Washington, DC 20510 

Dear Mr. Chairman: 

November 6, 2017 

Under the Ethics in Government Act of 1978, Presidential nominees requiring Senate 

confirmation who are not expected to serve in their Government positions for more than 60 days 

in a calendar year are not required to file public financial disclosure reports. The Act, as 

amended, however, contains a provision in section !Ol(b) that allows the committee with 

jurisdiction to request any financial information it deems appropriate from the nominee. 

We understand that your committee desires to receive a financial disclosure report (OGE 

Form 278) from any Presidential nominee for a position on the Board of Governors of the United 

States Postal Service, along with a written opinion from this Office regarding any possible 

conflicts of interest. 

Therefore, I am forwarding a copy of the financial disclosure report of Calvin R. Tucker, 

who has been nominated by President Trump for the position of a Governor on the Board of 

Governors, United States Postal Service. Because the nominee is not expected to serve more 

than 60 days in any calendar year, the enclosed report and this letter are submitted to you in 

accordance with your committee's confirmation procedures and will be available for public 

inspection only to the extent provided by your practices. There is no authority under the Act for 

public release of this material by the executive branch. 

We have reviewed the report and have obtained advice from the agency concerning any 

possible conflict in light of its functions and the nominee's proposed duties. Also enclosed is an 

ethics agreement outlining the actions that the nominee wiil undertake to avoid conflicts of 

interest. Unless a date for compliance is indicated in the ethics agreement, the nominee must 

fully comply within three months of confirmation with any action specified in the ethics 

agreement. 

1201 NEW YORK AVENW·SUITESOO·WASHJNGTON DC·20005 * * * * 
192 

The Honorable Ron Johnson 

Page2 

Based thereon, we believe that this nominee is in compliance with applicable laws and 

regulations governing conflicts of interest. 

Enclosures REDACTED 

Sincerely, 

DAVID 

APOL 

David J. Apol 

\ ~~;t!~~~.~~=~;-omco '.or Government E1hia. Cll .. OA VlD APOL, 

*f p4.~19l00300.IOO.l.t<"95-49100l981B 

nat~: :zo11.1 L06 to-:17;09 -oS'OO' 

Acting Director and General Counsel 
193 

Calvin R. Tucl<er 

October 24, 20 !7 

Michael J. Elston 

Designated Agency Ethics Official 

Associate General Counsel and Chief Ethics & Compliance Officer 

U.S. Postal Service 

475 L'Enfant Plaza, SW 

Washington, DC 20260-1100 

Dear Mr. Elston: 

The purpose of this letter is to describe the steps that I will take to avoid any actual or 

apparent conflict of interest in tl1e event that I am confirmed as a Member of the Board of 

Governors of the United States Postal Service. 

As required by 18 U.S.C. § 208(a), I will not participate personally and substantially in 

any particular matter in which I know that I have a financial interest directly and 

predictably affected by the matter, or in which I know that a person whose interests are 

imputed to me has a financial interest directly and predictably a±Tected by the matter, 

unless I fu·st obtain a written waiver, pursuant to 18 U.S.C. § 208(b)(l), or qualify for a 

regulatory exemption, pursuant to 18 U.S. C. § 208(b)(2). I understand that the interests 

of the following persons are imputed to me: any spouse or minor child of mine; any 

gene tal partner of a partnership in which I am a limited or general partner; any 

organization in which I serve as officer, director, tmstee, general partner or employee; 

and any person or organization with which I am negotiating or have an anangement 

concerning prospective employment. 

I will continue to serve as President of Eagles Capital Advisors, LLC and as CoManaging Director of Lincoln Wealth Management, LLC. In my role as Governor, I will 

not participate personally and substantially in any particular matter that to my knowledge 

has a direct and predictable effect on the financial interests of Eagle Capital Advisors or 

Lincoln Wealth Management, unless r first obtain a written waiver, pursuant to 18 U.S.C. 

§ 208(b)(l). I also will not participate personally and substantially in any particular 

matte!' involving specitk parties in which I know that a client or former client of mine is 

a party or represents a party, for a period of one year after I last provided service to iliat 

client, unless l am authorized to participate in ilie matter, pursuattt to 5 C.F .R. § 

2635.502(d). 

I have been advised that I will likely serve on the Board of Governors for no more than 

60 days in any period of 365 consecutive days. Accordingly, I understand that I may not, 

under 18 U.S. C. §§ 203(c)(l) and 205(c)(l ), provide any representational services or act 

as agent or attorney for another in any particular matter involving specific parties in 

which I have participated personally and substantially as a government official. I also 

understand that I may not receive a share of any payment made for such representational 
194 

services performed by another. T understand that additional requirements of 18 U.S.C. §§ 

203(c)(2) and 205(c)(2) will apply to me ifT serve for more than 60 days in any period of 

365 consecutive days. In that event, I will comply with all applicable requirements, and l 

will consult your office if I have any questions about those requirements. 

T will meet .in person before my first meeting of the board in order to complete the initial 

ethics briefing required under 5 C.F.R. § 2638.305. Within 90 days of my confirmation, I 

will document my compliance with this ethics agreement by notifying you in writing 

when l have completed the steps described in this ethics agreement. 

I have been advised that it is the Postal Service's position that an appearance of 

impropriety may be created by my holding any financial interests in its competitors, i.e., 

companies that deliver mailable matter outside the U.S. mails(~ Federal Express, 

United Parcel Service, DHL, Amazon, etc.). I agree that during my service as a member 

of the Board of Governors, I will not invest in any company that directly competes with 

the U.S. Postal Service(~ Federal Express, United Parcel Service, DHL, Amazon, 

etc.). 

Finally, I will recuse myself fi·om participation on a case-by-case basis in any particular 

matter involving specitic parties in which I determine that a reasonable person with 

knowledge of the relevant facts would question my impartiality in that matter, unless I 

am first authorized to participate, pursuant to 5 C.F.R. part 2635, subpart E. 

Sincerely, 

~__;e.~ 

Calvin R. Tucker 
195 

U.S. Senate Committee on Homeland Security and Governmental Affairs 

Pre-hearing Questionnaire 

For the Nomination of Calvin R. Tucker to be 

Governor ofthe United States Postal Service 

I. Nomination Process and Conflicts of Interest 

1. Did the President give you specific reasons why he nominated you to serve as a Governor 

of the United States Postal Service? 

No. 

2. Were any conditions, express or implied, attached to your nomination? If so, please 

explain. 

No. 

3. Have you made any commitments with respect to the policies and principles you will 

attempt to implement as Governor? If so, what are they, and to whom were the 

commitments made? 

No. 

4. Are you aware of any business relationship, dealing, or financial transaction that could 

result in a possible conflict of interest for you or the appearance of a conflict ofinterest? 

If so, please explain what procedures you will use to recuse yourself or otherwise address 

the conflict. And if you will recuse yourself, explain how you will ensure your 

responsibilities are not affected by your recusal. 

No. 

II. Background of the Nominee 

5. What specific background and experience affirmatively qualifies you to be a Governor of 

the Postal Service? 

My background and experience as an entrepreneur, small businessman, financial 

and management consultant, former board member of various nonprofit 

organizations and community activist qualifies me to be a Governor of the Postal 

Service. 

Senate Homeland Security and Governmental Affairs Committee Page I 
196 

6. If confirn1ed, how would your experience in in the private sector prepare you to serve as 

a Governor of the Postal Service? 

My experience in the private section gives me the ability to assess and analyze a 

problem and to strategically develop solutions and assist in the implementation of a 

resolution to the defined problem or problems. 

7. Please describe: 

a. Your leadership and management style. 

My leadership and management style is participatory. I believe that management 

and employees working together can solve simple or complex issues. Also, by 

working together, management and employee can maximize productivity. 

b. Your experience managing persmmel. 

I have managed variously sized groups of personnel from as small as one person to 

well over 100 employees, both domestically and internationally. 

c. What is the largest number of people that have worked under you? 

During my tenure at the Resolution Trust Corporation, a temporary Federal 

Corporation, I managed a very significant temporary receivership staff. 

III. Role of a Governor of the United States Postal Service 

L_Piease describe your view of the Postal Board of Governor's (Board) core mission and a 

Governor's role in achieving that mission. 

The Postal Board of Governor's core mission is to; 

.!_Set policy; 

.!_Establish the strategic direction of the Postal Service; 

.!_Set prices for postal products; 

.!_Oversee the operations ofthe Postal Service, and 

.!_Represent the interest of the American people. 

9. If confirmed, what specific contributions do you hope to make during your time on the 

Board? 

If confirmed, I will assist the Board in bring the following: 

• Setting policy; 

.!_Establishing the strategic direction of the Postal Service; 

.!_Setting prices for postal products; 

.!_Overseeing the operations of the Postal Service, and 

• Representing the interest of the American people. 

Senate Homeland Security and Governmental Affairs Committee Page2 
197 

I 0. What do you believe are the functions and responsibilities of an individual Governor? 

What in your training and experience demonstrates your qualifications to fulfill these 

functions and responsibilities? 

The functions and responsibilities of an individual Governor is to assist with the 

following: 

• Setting policy; 

.!_Establishing the strategic direction of the Postal Service; 

.!_Setting prices for postal products; 

.!_Overseeing the operations of the Postal Service, and 

.!_Representing the interest of the American people. 

As a businessman, entrepreneur, banker and federal bank liquidator and board 

member, I have assisted in the development and implementation of policies and 

practices for organization and have overseen the administration of those policies 

and practices. 

II. What do you see as the main challenges facing the Postal Service? What do you believe 

should be the Board's top priorities in meeting those challenges? 

The main challenges facing the Postal Service are as stated above [answer number 

10). 

12. What do you believe should be the respective roles and functions of the Board and the 

Postal Service management? How do you believe the Board and management can best 

work together to meet the challenges facing the Postal Service? 

The Board's role should be one that is principally focused on the following: 

• Setting policy; 

.!_Establishing the strategic direction of the Postal Service; 

.!_Setting prices for postal products; 

.!_Overseeing the operations ofthe Postal Service, and 

.!_Representing the interest of the American people. 

Postal management's role should center on the implementation of policies and 

practices as directed by the Board and/or other regulatory bodies. 

13. The Governors are chosen to represent the public interest generally. As a Governor, how 

will you plan to interact with various stakeholders interested in postal issues and how can 

you effectively represent their interests? 

As a Governor, I intend to have an open policy with respect to meetings and 

discussing with all stakeholder solutions to the issues, concerns and challenges faced 

by the Postal Service. 

Senate Homeland Security and Governmental Affairs Committee Page 3 
198 

14. The Postal Accountability and Enhancement Act of2006 (PAEA) requires that by the end 

2015, at least four members of the Board have experience managing an organization of 

50,000 employees or more. What are your views on this requirement for appointment to 

the Board of Governors? 

I do not have a specific opinion with respect to this question. 

IV. Policy Questions 

Postal R~form and Financial Issues 

15. The Postal Service continues to experience volume and revenue losses. The Postal 

Service ended Fiscal Year (FY) 2017 with a net loss of$2.7 billion. 

a. In your view, what is the Board's role in overseeing the Postal Service's efforts to 

improve its financial condition and to increase postal revenue and cut costs, while 

also meeting its universal service obligations and other statutory requirements? 

As a Governor, I will use my overall skills to address the most serious issues. 

b. How does the Board's role differ from the role of the Postal Regulatory Commission 

(PRC) or the role of Congress? 

The Postal Regulatory Commission reviews rates, nationwide service standard 

changes and new products and services approved by the Board. The Postal 

Regulatory Commission also oversees the operations of the Postal Service and 

makes determinations about whether they comply with law and existing standards. 

16. Postal Service volumes and revenues associated with its letter mail and other market 

dominant products continue to decline, and First-Class Mail in particular is projected to 

significantly decline over the next decade. At the same time, the volume of packages and 

its competitive products have grown significantly in recent years. 

a. How can the Postal Service remain viable as letter mail volume declines? 

The Postal Service can remain viable by: 

• Providing reliable delivery of postal products, especially parcels; 

• Making prudent infrastructure investments; 

• Innovating, especially with digital technology; and 

• Maintaining excellent customer service. 

b. How can the Postal Service take advantage of the growing popularity of e-commerce 

and package delivery? 

Senate Homeland Security and Governmental Affairs Committee Page4 
199 

The Postal Service needs predictable and reliable delivery of all postal products and 

efficient processing and transportation of packages. 

c. What new actions should the Postal Service take to maintain its viability and 

competitiveness in both its traditional lines of business and in potential growth areas? 

The Postal Service needs to take advantage of leveraging its end-to-end network in 

the digital economy. 

d. What do you believe are the proper limitations of the Postal Service with respect to 

competition with the private sector? 

While private sector is the backbone of American commerce, the Postal Service 

must be careful to follow the law, not abuse its governmental status and not unfairly 

disadvantage the private sector, especially on competitive pricing. 

e. How proactive should the Board be in identifying areas for the Postal Service to cut 

costs quickly so that it can cover its operating expenses? 

The Board should always be proactive with respect to increasing revenue sources 

and reducing costs to the enterprise. 

f. What are the Board's role and responsibilities in identifYing opportunities for the 

Postal Service to increase volume? 

The Board has a strategic planning role to help identify opportunities for the Postal 

Service. 

17. How do you view current service standards and delivery frequency with respect to the 

obligation for service to every American? 

The Postal Service should meet its current delivery standards and meet its statutory 

delivery obligations. 

18. The Government Accountability Otlice (GAO) again included the Postal Service on its 

High-Risk List in 2017 because of its precarious financial condition. GAO added the 

Postal Service's financial condition on its high-risk list in 2009, after removing it in 2007. 

In your view, what should be the Postal Service's strategy for improving its financial 

condition and restmcturing its business model to ensure its long-term viability, in 

addition to any factors that the Postal Service has announced as part of its new business 

model? 

GAO's finding rests on two premises:One, the business model that relies on the 

profits of First Class mail to subsidize other, less profitable activity is severely 

threatened; Two, there are significant unfunded liabilities-particularly retiree 

Senate Homeland Security and Governmental Affairs Committee Page 5 
200 

pension and health ~are obligations-that will be impossible to sustain given the 

problems with the business model and these will grow more burdensome with time. 

One could argue that the key is solving the business model problem. By meeting the 

needs of the American people for effectin mail service and a~eomplishing this 

through reforms that allow the Postal Service to remain a self-supporting federal 

entity, the Postal Service's long-term viability can be assured. 

Given the complexity of the mail industry, finding the proper reforms and strategies 

will require signifi~ant input from management experts, stakeholders, and 

ultimately the Congress. If confirmed, as a new Governor I pledge to examine and 

challenge the strategies to ensure that the Postal Servke can continue to provide its 

essential service while meeting its obligations. 

The Postal Service is a highly complex organization, and therefore any solution to its 

financial situation will also be complex. Plans likely will involve generating new 

revenue by offering innovative products and improving existing ones, and making 

all possible improvements to the Postal Service internal business structure, all while 

meeting and exceeding the needs and expectations of customers. Striking the right 

balance between these factors will require careful review of the Postal Service's 

business plan 

I 9. The Postal Service has estimated its liabilities (including retiree pension and health 

benefits) to be over $484.8 billion while the combined assets are $363,1 billion, leaving 

an unfunded liability of $121.7 billion, How do you believe the Postal Service should 

address its unfunded liability? 

By pursuing a sustainable business model, the Postal Service will be able to meet its 

long-term liabilities over the decades ahead. 

Currently, however, the Postal Service lacks tbe ability to pay all of its unfunded 

liabilities, and until the business model is restructured, it will need to prioritize its 

unfunded liability payments based on its available cash, the operational needs of 

providing servke, and ensuring that it is able meet its obligations to its employees 

and retirees. 

20, There are differences of opinion about the privatization of the Postal Service. What are 

your views on privatization? 

If confirmed, my goal is to help set the strategic plan for the United States Postal 

Service that would allow it to meet its universal service obligation, especially in 

rural America, and become financially self-supporting. I have not investigated the 

issue of privatization. 

Senate Homeland Security and Governmental Affairs Committee Page 6 
201 

21. In recent years. postal management has indicated that the Postal Service has been 

financially unable to make the investments necessary to replace its aging vehicle fleet or 

make other necessary capital investments in order to remain viable and competitive in 

the coming years. What steps do you believe the Board should take to prioritize key 

capital investments and allocate the resources necessary to make them? 

This question will require more extensive review before a recommendation can be 

made. 

22. What short and long-term actions should Congress take to assist the Postal Service in 

achieving financial viability? 

As a governor, I will use my extensive private sector background to examine the 

financial condition of the postal service, and make informed judgements about 

establishing a strategic focus for the Postal Service. 

Postal Rates and New Products 

23. One of the core principles ofPAEA was to provide Postal Service customers, through the 

establishment of an inflation-based rate cap, with predictability and stability in pricing of 

the Postal Service's market dominant products. Pursuant to PAEA, the PRC completed a 

review of whether the rate cap met the criteria laid out by 39 U.S.C. § 3622, including 

stability, fairness, and generating adequate revenue to cover Postal Service costs. The 

PRC found that the cap did not meet all of these criteria, specifically the requirement that 

the cap did not allow for long-term financial stability of the Postal Service or for the 

Postal service to maintain high quality service standards. 

a. Do you believe the inflation-based rate cap has met the objectives and factors laid out 

in 39 U.S.C. § 3622? 

As a general business principle, price caps limit the ability of producers or 

service providers to pass along costs to consumers, and thus result in incentives 

to control costs in order to achieve or manage profitability. While fairly judging 

whether the objectives and factors in 39 U.S.C. § 3622 have been met would 

require extensive study, the Postal Regulatory Commission has the responsibility 

to determine whether the price cap has met its statutory objectives. If confirmed, 

and when the PRC has completed its review, I would expect to carefully examine 

its conclusions with the view of how the Postal Service can best fulfill its mission 

to provide effective mail service. 

Senate Homeland Security and Governmental Affairs Committee Page 7 
202 

b. Which of these objectives or factors. if any, do you believe should be weighted above 

others? 

As written by Congress, each of the objectives and factors is seemingly given 

equal weight, and each is important. In weighing them, if confirmed, I would 

assess them based on how each contributes to the public interest generally. 

24. The Postal Service has requested legislation authorizing greater flexibility in offering 

non-postal products. 

a. Under what circumstances should the Postal Service be permitted to offer non-postal 

products? 

The Postal Accountability and Enforcement Act defines when non-postal products 

can be offered. The Postal Service should act consistent with the law defining 

non-postal products. This will also ensure that the Postal Service does not unfairly 

compete with private sector on these products. 

b. To what extent do you believe the Postal Service should rely on the provision of 

non-postal products in its efforts to generate additional revenue? 

Same answer as above. 

c. How would you ensure the Postal Services does not compete unfairly with the private 

sector in selling non-postal products? 

Same answer as above. 

25. How can the Postal Service take better advantage of its current authorities to make the 

mail more appealing and valuable to customers and attract additional mail volume? 

Like any other commercial enterprise, to be successful the Postal Service must offer 

excellent service at a price point that will attract customers. To do so, it must control 

its costs while recognizing that it must simultaneously provide world-class service. It 

must be innovative and respond to the market. It must build on its strengths and 

improve in those areas where business opportunities exist. In other words, the Postal 

Service can be successful and attract additional business by providing a product 

that Americans value. 

As the digital economy dramatically changes the mailing industry, the Postal Service 

must continue to adapt to these changes. One way to make mail more appealing is to 

build on its current efforts to integrate digital with hard copy mail, such as with 

Informed Delivery, where customers can see the current day's mail on their 

smartphones before it gets delivered. 

Senate Homeland Security and Governmental Affairs Committee Page 8 
203 

Facility Closings and Service Changes 

26. What role should the Board have in decisions to realign postal retail and mail processing 

networks. including decisions to close specific facilities? 

The Board should set the strategic direction of the Postal Service and approve major 

operational decisions. 

27. How can the Board ensure the Postal Service communicates with its customers and 

employees so that they are aware of updated information on the consolidation process, as 

it becomes available? 

The Board can encourage management to use its monthly newsletter and social 

media present to communicate with customers and employees. 

28. The Postal Service is required to deliver mail to every address in the country. creating 

the need for retail postal locations in low-density counties and towns. How would you 

balance the Postal Service's universal service obligation and the need for rural counties 

to have reasonable access to the postal services when looking at ways to improve the 

Postal Service's financial condition? 

The Postal Service needs to pay particular attention to meeting the needs of rural 

Americans because they often lack access to other communication networks such as 

broad band. 

29. According to GAO, approximately 41 percent of postal revenue comes from alternate 

retail channels such as the Postal Service website, automated postal centers, and contract 

postal units. Do you believe the Postal Service should increase the use of alternate retail 

channels, and if so, how should this be accomplished? 

In achieving financial solvency, the Postal Service will need to match its capacity to 

declining First Class Mail volumes, while simultaneously adjusting to increasing 

package volumes. One way to assist in this adjustment might be by increasing 

alternative retail channels, like self-service kiosks, which arc less expensive to 

operate, but would enable to the Postal Service to maintain essential services. 

While the specific business case for how best to provide added retail channels must 

be carefully examined, today's consumers value added choices and convenience 

must be factored into this process. If confirmed, I would rely heavily on the subject 

matter experts with specific knowledge of the mailing industry in helping formulate 

plans to more effectively serve the American people. 

30. The Postal Service has, in the past, proposed both the elimination of Saturday delivery of 

some classes of mail and has nearly eliminated the overnight service standard. 

Senate Homeland Security and Governmental Affairs Committee Page 9 
204 

a. What is your opinion of the Postal Service's proposals to eliminate Saturday delivery 

of some classes of mail and lower certain service standards? 

Finding the proper balance between consumer expectations, what services can 

be provided at what price, and how any changes (or any lack of changes) will 

affect the long-term viability of a business is a difficult task. In the case of the 

Postal Service's Saturday delivery, changes arc further complicated by the 

statutory requirement to deliver mail six times per week. Understanding this 

background, if confirmed I would want to Jearn more about the issue of 

Saturday delivery or changing service standards before 1 would be comfortable 

offering an informed opinion. 

b. What steps should the Postal Service take to ensure that any service changes it makes 

do not disproportionately harm any subset of postal customers and are consistent with 

the Postal Service's universal service obligation? 

I believe that the universal service obligation is fundamental to the Postal 

Service, and any proposed changes should be considered according to whether 

they would improve service to the public generally. Singling out specific 

customers for disproportionate service cuts would violate the universal service 

obligation and, if confirmed, I would oppose it. 

c. How do you believe that changes to service affect customers' attitudes towards and 

use of the Postal Service? 

Like any commercial entity, the Postal Service must protect its brand and 

reputation. Changes that diminish that reputation in the eyes of the public would 

be counterproductive. 

d. How should the Postal Service balance the potential cost savings gained or potential 

revenue lost from changing service? 

The Postal Service must carefully balance the needs of customers and the 

business constraints in providing effective service and a valuable product. Any 

changes to senices must be carefully accessed and the Governors should take a 

big-picture view and consider whether any change provides for a better, more 

effective, more sustainable Postal Service. 

Senate Homeland Security and Governmental Affairs Committee Page 10 
205 

Workforce-Related r.~sues 

31. Since 1999, when the workforce peaked at over 900,000 employees, the Postal Service 

has been reducing its workforce, including through hiring freezes, early retirements, 

incentive payments for some targeted attrition, and other ways. In the last two years, 

however, this trend is reversing and the number of Postal Service employees is 

increasing. Does the Postal Service have sufficient flexibility to adjust its workforce to 

its operational needs? If not, what additional flexibility is needed? 

In 1991 the Postal Service workforce was approximately 900,000 employees. Today, 

it stands at approximately 600,000. It appears that the Postal Service bas been able 

to reduce its workforce. But as a governor I will study this issue more 

comprehensively. 

32. As an increasing number of postal executives, managers, and supervisors are eligible to 

retire, how can the Board work with postal management to address these challenging 

succession, continuity, and associated cost issues? 

The Postal Service needs a good succession planning process. In the private sector, I 

was involved with several excellent succession planning operations. I will bring this 

experience to the Board. 

33. In recent years, performance-based compensation systems have been implemented for 

postal executives, as well as managers and supervisors. The success of these systems 

depends on the credibility of the performance measures. How can the Board ensure the 

credibility of the Postal Service's performance-based compensation systems? Do you 

have an opinion about performance-based compensation? 

The Board can ensure the credibility of the performance-based compensation 

system by constantly evaluating and testing performance criteria and publishing the 

score card results. 

34. Please describe the kind of labor-management relationship you believe is most desirable 

at the Postal Service. 

At times the Postal Service's labor-management relationship has been 

confrontational, and at others, it has been collaborative. If confirmed, I would 

expect management and labor representatives to have a healthy, respectful 

relationship, and I would hope that both recognize that neither can be successful at 

the expense of the other. My hope would be that labor and management can work 

together to provide the best possible service to the American people. 

Senate Homeland Security and Governmental Affairs Committee Page 11 
206 

Accountability 

35. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from Members of Congress? 

The Board should ensure that Congress, the OIG and the GAO have the 

information they need to fulfil their oversight roles. 

36. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from the Postal Service Office 

of Inspector General (USPS OIG)? What do you believe should be the proper response 

of the Board to recommendations made by the USPS OIG to Postal Service management? 

The Board should ensure that Congress, the OIG and the GAO have the 

information they need to fulfil their oversight roles. 

37. What do you believe should be the proper response of the Board if Postal Service 

management is not responsive to requests for information from the GAO? What do you 

believe should be the proper response of the Board to recommendations made by the 

GAO to Postal Service management? 

The Board should ensure that Congress, the OIG and the GAO have the 

information they need to fulfil their oversight roles. 

38. Protecting whistleblower confidentiality is of the utmost importance to this Committee. 

a. During your career in the federal government, how did you address whistleblower 

complaints? 

While at the Resolution Trust Corporation (RTC), I did not have any whistleblower 

complaints. 

b. How do you plan to implement policies within the Postal Service to encourage 

employees to bring constructive suggestions forward without the fear of reprisal? 

I intent to encourage an open line of communication with employees. 

c. Do you commit without reservation to work to ensure that any whistleblower within 

the Postal Service does not face retaliation? 

Yes. 

Senate Homeland Security and Governmental Affairs Committee Pagel2 
207 

d. Do you commit without reservation to take all appropriate action if notified about 

potential whistleblower retaliation? 

Yes. 

V. Relations with Congress 

39. Do you agree without reservation to comply with any request or summons to appear and 

testify before any duly constituted committee of Congress if you are confirmed? 

Yes. 

40. Do you agree without reservation to make any subordinate official or employee available 

to appear and testify before, or provide information to, any duly constituted committee of 

Congress if you are confirmed? 

Yes. 

41. Do you agree without reservation to comply fully, completely, and promptly to any 

request for documents, communications, or any other agency material or information 

from any duly constituted committee of the Congress if you are confirmed? 

Yes . 

. Assistance 

42. Are these answers your own? Have you consulted with Postal Service management, 

employees, or any other interested parties? If so, please indicate which entities. 

Yes, these are my answers. I have not consulted with Postal Service management, 

employees, or any other interested parties, though I have asked for background and 

context from the Postal Service's Governmental Relations group. 

Senate Homeland Security and Governmental Affairs Committee Page 13 
208 

U.S. Senate Committee on Homeland Security and Governmental Affairs 

Minority 

Supplemental Pre-hearing Questionnaire 

For the Nomination of Calvin R. Tucker to be 

Governor of the United States Postal Service 

I. Nomination Process and Conflicts of Interest 

l. Has the President or his staff asked you to sign a confidentiality or non-disclosure 

agreement? 

No. 

2. Has the President of his staff asked you to pledge loyalty to the President or the 

Administration? 

No. 

3. During your tenure, have you asked any federal employee or potential hire to pledge 

loyalty to the President, Administration or any other government official? 

No. 

II. Background of Nominee 

4. Do you seek out dissenting views and how do you encourage constmctive critical 

dialogue with subordinates? 

[ often seck out dissenting views and when the opportunity arises I meet with 

employees to encourage constructive critical dialogue. A key to this is providing an 

environment where everyone feels valued and everyone feels safe in expressing their 

opinion. While businesses and organizations must ultimately decide on a course of 

action and implement it, successful organizations value and respect critical ideas 

and outlooks. 

Senate Homeland Security and Governmental Affairs Committee Page 14 
209 

5. Please give examples of times in your career when you disagreed with your superiors and 

aggressively advocated your position. Were you ever successful? 

While at the Resolution Trust Corporate one of my earlier responsibilities was the 

management and disposition of various assigned receivership commercial assets. In 

that role, I would recommend the disposition of an asset through the delegated 

authority granted to my superior. As such, the modified disposition manual typically 

recommended a bulk sale of assets, but often I would achieve a higher disposition 

value for a single sale. This point would typically cause much discussion with my 

superior, but in the end my superior would see the merit in my argument and 

thereby approve the single asset disposition process. Yes, I was often successful as I 

achieved the maximum value for the government and the receivership creditors. 

6. Please list and describe examples of when you made politically diflicult choices that you 

thought were in the best interest of the country. 

As a Republican in an overwhelmingly Democratic city [Philadelphia] I have often 

been able to work with leaders of the Democratic Party, despite ideological 

differences, for the betterment of our city and country. 

7. What would you consider your greatest successes as a leader? 

My ability to be fair when evaluating a situation. Example: During my tenure at the 

Resolution Trust Corporation while servicing as a field site manage/liquidator in 

charge, I was assigned a specific receivership institution to liquidate (assets and 

liabilities equal to $800 million), which I was able to do in less than forty-Five [45] 

days. As a leader, I was able to plan, direct and strategize the successful payout of 

depositors !i.e. liabilities] and perform the necessary resolution and disposition of 

the receivership assets to return liquidity/capital back to the U.S. Treasury for the 

benefits of the excess receivership depositors. 

8. What would you consider your greatest failure as a leader? What lessons did you learn 

from that experience? 

My greatest failure occurred while an executive with United Bank of Philadelphia. 

During the approximately IS years of the bank's prior existence it had built a 

reputation for poor customer service, unprofitability, not paying a return on 

shareholders' equity and poor management, My role at the bank was to help guide 

the bank into a new direction from a business development and marketing 

standpoint. As such, after much study and participating in many one on one 

meetings with community leaders and opinion makers, I recommended that the 

bank, in addition to improving the aforementioned, should consider a new branding 

strategy [i.e., a name change]. Unfortunately, other members of the executive team, 

Senate Homeland Security and Governmental Affairs Committee Page 15 
210 

including the CEO, were not convinced that a new name was warranted, and 

therefore my suggestion did not prevail. Since that time the bank has further 

declined in its overall market presence and competitiveness. In hindsight, I should 

have made a direct appeal to the Board of Directors with respect to this new 

branding strategy. 

III. Role of a Governor of the United States Postal Service 

9. The Postal Service possess vast physical assets (processing plant~, equipment, vehicles, 

land, and buildings), much of which were transferred to the Postal Service from the 

former Department of the Post Office and were paid for by taxpayers. As an essential part 

of the nation's suppl? chain, these assets can deliver about 154 billion mail items 

annually, nmion-wiuc. 

Auditionally, the Postal Service is at the center of the mailing and shipping industry, 

supporting about seven million jobs and about $1.4 trillion in revenues· -generating 

enormous \·alue and wealth for mail rdated industries, their workers, and the economv as 

a whole. The Postal Service holds about $27 billion in halance sheet assets.3 

The P<;stal 

Service OIG has estimated the Postal Service's real estate portfolio asset value alone to 

have a market value of about $85 billion.' 

If confirmed, how will you work to protect taxpayer and public ownership interests in the 

Postal Service's enormous physical assets, financial holdings, and retirement funds? 

How can the Postal Service realizes and retain more of the value and profits its capital 

assets and opemtions generate? 

I will rely of the \'arious evaluations and reports that are produced by Postal 

management, USPS OIG and the GAO to ascertain the ongoing status of the 

financial condition, asset value and the retirement fund obligation. 

1 United States Postal Service, Postal Facts 20 I 7 (20 I 7) 

{ill!ps: labuUl.li~JllL~Jllll 11 IHH\.;-urc po,,lal-i:lcts po:<tall',l\lS~lll7-v2,pdt). 

2 Envelope Manufacturers Association Foundation, US Mailing !ndust1y .Jobs and Study 

(20 15) ( tensionenvelope.com/sites/default/files/20 15-mailing-industry-job-study.pdf). 

3 United States Postal Regulatory Commission, United States Postal Service: 2017 

Report on Form /O-K (Nov 14, 2017) 

(http;>: !;tbouL\1'1''·''"11 \\ ll!J-1\1;-arc· linam:i:ds lllk-r~pnrts t\ 211 I 7.pdt). 

' United States Postal Service, Oftice oflnspector General, Be Careful About What lim 

Assume (Feb. 16. 20 15) (uspsoig.gov/blog/be-careful-what-you-assume). 

Senate Homeland Security and Governmental Affairs Committee Page 16 
211 

10. How will you work to promote public transparency and oversight of the Postal Service's 

operations and financial performance, as well as, its management actions and overall 

integrity? 

I will continue to encourage open meetings, and internal and external discussions 

with stakeholders. 

IV. Policy Questions 

Financiallfsues and Opera/ions 

I L America's population, and with it, the total number of addresses, continues to grow. 

Despite the growth in addresses, all of which the Postal Service is still required to deliver 

mail to, mail volumes continue to decrease. That puts the Postal Service in the difticult 

position of expanding its network despite shrinking demand. How should the Board be 

involved in decisions to right-size postal retail and mail processing networks, including 

decisions to close specific facilities? 

The Board should set the strategic directions of the Postal Service and approve 

major operational decisions. 

12. The 2006 Postal Accountability and Enhancement Act of 2006 required the Postal 

Service to pre fund 100% of its future retiree health benefits liability. Without the 

prefunding requirement, the U.S. Postal Service would have produced a net profit every 

year from 2012 to 2016, roughly coinciding with the greater economic recovery from the 

Great Depression. Are you aware of any U.S. company that prefunds 100% of any retiree 

benefit liability? Do you believe this is a sound accounting and business practice? If so, 

why? If not, why not? 

The Postal Service should be able to adequately fund its retiree health benefits 

obligations. If the Postal Service's fundamental business challenge--finding a 

sustainable business model-can be addressed, then there will be adequate 

resources to meet the liabilities. 

Prefunding 100% of any retiree benefit liability is a worthy goal, hut this 

requirement has increased the financial strain on the Postal Service, and they have 

not been ahle to make these payments in recent years, in part, because of the 

declining First-Class Mail volume. To make these payments on a consistent basis, 

the Congress will likely need to enact postal reform legislation to change the Postal 

Service's business model. 

Senate Homeland Security and Governmental Affairs Committee Page 17 
212 

13. Too often, efforts to improve the Postal Service's financial condition have been borne by 

rural communities because post offices in those communities are not as profitable as 

higher-trafficked urban post offices and delivery costs are higher. Yet rural communities 

are, in many cases, more reliant on the Postal Service for delivering needed goods and 

services. What additional factors should be considered before the postal service makes 

decisions on cost-cutting efforts? 

The Postal Service should take into consideration the local and regional impact of 

cost cutting measures. 

!4. In 2012, the Postal Service reduced delivery standards in order to consolidate a number 

of mail processing facilities. What do you think are the long-tcnn financial costs and 

benefits to reducing the quality of the Postal Service's core products? 

If confirmed, I will need to study this issue to address the overall financial impact of 

reducing delivery standard. 

Postal Reform 

15. Some view the Postal Service as ''a business" to serve paying customers: others see it as 

a government services that must continue to be available to all citizens regardless of the 

financial profitability of operating in certain, more rural areas of the country. Which 

view should take priority? 

Rates 

The Postal Service is a government service that must be able to meet its universal 

service obligation while meeting its financial obligations. 

16. Since 2007, the Postal Service has reduced its career workforce by more than 200,000 

employees, and closed I, 716 post otliccs. The Postal Service is also limited in its ability 

to increase revenue through rate increases on tirst class mail. With these restrictions in 

place, what arc the Postal Service's best alternatives to raise additional revenue? Should 

it consider increasing prices on its parcel products? 

This matter requires further study. 

Customer Service 

17. The Postal Service sometimes is forced to temporarily close a retail postal facility, for 

example after a natural disaster. Yet many of these facilities stay closed for as much as 5 

years or longer with little or no communication with the affected community. How can 

the Board ensure that the Postal Service improves communication with its customers? 

Senate Homeland Security and Governmental Affairs Committee Page 18 
213 

The Board can ensure improved communications through the overall strategic plan 

and operational directives. 

Oversight 

18. The Postal Service has been operating without any independent Board Members for over 

a year, and without quo nun since 2015. In the event this occurs in the future, what 

additional authorities should the Postmaster General, Deputy Postmaster General and 

Postal Regulatory Commission be given to ensure that the Postal Service can continue to 

operate effectively and efficiently in the interim? 

I do not have a specific opinion with respect to this question. 

19. Recent reports by the USPS OJG have found instances where practices and procedures by 

postal employees and management did not uphold the reliability and integrity of the 

Postal Service's performance data, such as scanning mail as delivered even if it was not. 

What steps should the Postal Service take to help ensure the integrity of its service 

performance system? 

I would like to study this matter further before having to render an opinion. 

20. As providers of vital services, many foreign nations' postal operators are required to meet 

well defined universal service obligations. The U.S. Postal Service has few mandated, 

measurable service standards. Are such standards needed in the U.S. and, if so, what 

steps would you take to being implementing them? 

U.S. Postal Service is currently governed by service standards. 

Opioids 

21. Criminals are using the Postal Service as a means to distribute illegal narcotics, including 

deadly opioids, posing enormous risks to American citizens. This has put not just the 

lives of the users at risk, but also the lives of postal workers. Yet the sanctity of mail 

against government inspection has been a hallmark of postal policy, requiring search 

warrants to allow law enforcement to open a mail item. Should law enforcement be 

given wider latitude to open suspicious mail items? How might privacy concerns be 

balanced against the need to protect public and worker safety? 

The Postal Service must be given as much latitude as possible in initiating security 

measures while preserving privacy in protecting customers and its employees. 

Wages and Benefits 

Senate Homeland Security and Governmental Affairs Committee Page 19 
214 

22. Postal Service is having difficulty recruiting younger workers. What might be done to 

change the image of working for the Postal Service? 

If confirmed, I look forward to learning more about the specifics of the Postal 

Service's efforts to recruit younger workers. In general, however, I believe that 

younger workers value a work environment that is interesting, respectful and fair. 

Beyond offering equitable pay, does the Postal Service offer good advancement 

opportunities? Does it value fresh or different perspectives? Is it innovative--for 

instance using social media or new technical developments? If we can answer Y~'~~ to 

these questions, it might go a long way to solving any trouble recruiting the next 

generation of postal workers. 

V. Accountability 

23. What is your assessment of the oversight work performed by the Postal Service Office of 

Inspector General (USPS OIG) over the past decade? What do you view as the greatest 

challenges facing the USPS OIG? 

I'have not had an opportunity to review the USPS OIG works over the past decade 

and cannot comment on its greatest challenges. 

24. During your career, has your conduct as a federal employee ever been subject to an 

investigation or audit by an Inspector General, Office of Special Cmmsel, Equal 

Employment Opportunity Commission, Department of Justice, or any other federal 

investigative entity? If so, please describe the investigation or audit and its outcome. 

No. 

25. During your career as a federal employee, have you ever declined to implement 

recommendations made by the Office of Inspector General, the Office of Government 

Ethics, the Otllce of Special Counsel or the Government Accountability Office (GAO)? 

If so, please describe the recommendations that were made and your reasoning for not 

implementing them. 

No. 

26. If confirmed, do you pledge to implement recommendations made by the USPS OIG, 

Office of Government Ethics, the Ofiice of Special Counsel and the GAO? 

Yes, assuming recommendations are consistent with the mission of the Postal 

Service. 

Senate Homeland Security and Governmental Affairs Committee Page 20 
215 

VI. Relations with Congress and the Public 

27. If confirmed, how will you make certain that you will respond in a timely manner to 

Member requests for information? 

I will set a deadline to respond to Congress or any member. 

28. If confinned, do you agree without reservation to reply to any reasonable request for 

information from the Ranking Member of any duly constituted committee of the 

Congress'? 

Yes. 

29. If confirmed, do you agree without reservation to reply to any reasonable request for 

information !Tom members of Congress? 

Yes. 

30. If confirmed, do you commit to take all reasonable steps to ensure that you and your 

agency comply with deadlines established for requested information? 

Yes. 

31. If confirmed. do you commit to protect subordinate officials or employees from reprisal 

or retaliation for any testimony, briefings or communications with members of Congress? 

Yes. 

32. If confirmed, will you ensure that your staff will fully ~nd promptly provide information 

and access to appropriate documents and officials in response to requests made by the 

GAO and the Congressional Research Service? 

Yes. 

33. If confirmed, will you agree to work with representatives from this Committee and the 

GAO to promptly implement reconunendations for improving the Postal Service's 

operations and effectiveness? 

Yes. 

Senate Homeland Security and Governmental Affairs Committee Page 21 
216 

34. If confirmed, will you direct your stall' to fully and promptly respond to Freedom of 

Information Act requests submitted by the American people? 

Yes. 

35. If confirmed, will you ensure that political appointees are not inappropriately involved in 

the review and release of Freedom of Information Act requests? 

Yes. 

36. If confirmed, will you direct your staff to adopt a presumption of openness where 

practical, including identifYing documents that can and should be proactively released to 

the public without requiring a Freedom of Information Act request? 

Yes. 

37. If confinned, will you keep this Committee apprised of new information if it materially 

impacts the accuracy of information your agency's officials have provided us? 

Yes. 

VII, Assistance 

38. Are these answers completely your own? If not, who has provided you with assistance? 

Yes. 

39. Have you consulted with the Postal Service management or any other interested parties? 

If so, please indicate which entities. 

No. These answers are my own, though I have asked for background and context 

from the Postal Service's Government Relation group. 

!, Calvin R. Tucker, hereby state that I have read the foregoing Pre-Hearing Questionnaire and 

Supplemental Questionnaires and that the infom1ation provided therein is, to the best of 

my knowledge, current, accurate, and complete. 

L~-->;?J. (Signature) 

This 9'h day of March 20 18 

Senate Homeland Security and Governmental Affairs Committee Page 22 
217 

Senator Rand Paul 

Post-Hearing Questions for the Record 

Submitted to Mr. Calvin Tucker 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

Apri118, 2018 

On the Universal Postal Union and the international mail system: 

As you may know, international mail is exchanged and delivered under the auspices of a treaty 

known as the Universal Postal Union (UPU). Because of its status as a treaty, the U.S. 

Department of State is the lead agency involved in negotiating the terms of the UPU. 

Nevertheless, the members of the Board of Governors of the U.S. Postal Service (USPS) should 

at a minimum be aware of several issues of growing concern involving the UPU and 

international mail pricing, trafficking and security. 

To that end, please answer the following as completely as possible. 

I. Are you aware that under the UPU, the USPS is required to deliver foreign packages at 

rates lower than those available to domestic shippers? 

Yes, I am aware that the Postal Service is required to deliver packages from foreign post 

offices, according to the treaties and agreements that have been agreed to. 

2. Are you aware that under the UPU, foreign postal services are not required to follow the 

same customs and security processes that are imposed on other international shippers? 

Yes, I am aware that the Postal Service, as the entity covered by the UPU, has different 

requirements and obligations than those of the other international shippers. 

3. Are you aware of the Senate Permanent Subcommittee on Investigations (PSI) report1 on 

vulnerabilities in the international mail system that concluded that "the federal 

government's policies and procedures are inadequate to prevent the use of the 

international mail system to ship illegal synthetic opioids into the United States"? 

I am generally aware of the report and, if confirmed, look forward to learning more about 

this complex subject. 

4. Are you aware that that same Senate PSI report noted that, due to the customs and 

security exemptions under the UPU for foreign postal services, " ... 318,891,780 

packages entered the United States with no associated (advanced electronic data, or 

AED] on the sender's name and address, the recipient's name and address, or the contents 

1 https://www.hsgac.senate.gov/subcommittees/investigations/hearings/combatting-the-opioid-crisis-exploitingvulnerabilities-in-international-mail 
218 

of the package. With no AED, [Customs and Border Protection] was unable to target any 

of these packages for further inspection before they entered the United States." 

Yes, I am generally aware of the report and, if confirmed, look forward to learning more 

about this subject, and specifically what can be done to increase the amount of advanced 

electronic data. 

5. If confirmed, will you commit to investigating these concerns, and to working with the 

U.S. Department of State to correct underpricing of international mail? 

Yes, if confirmed, one of my priorities will be to ensure that the Postal Service does 

everything possible to support and enable fair and equitable international mail 

arrangements. 

On assessing the USPS' unfunded liabilities: 

As I mentioned in the hearing, I believe the Committee would benefit from regular updates on 

the financial condition of the USPS, including (as mentioned by Mr. Williams in his testimony) 

"decomposing" the agency's long-term liabilities into their respective elements and developing a 

plan to improve the management of those liabilities. 

1. Would you be supportive of efforts by the USPS Board of Governors to provide regular 

updates on the financial condition of the USPS to the Committee? 

Yes, I believe that Congress must have a regular and thorough understanding of the 

Postal Service's financial condition, and if confirmed I will support all efforts to ensure 

that the Postal Service is as transparent as possible. 

On overhead and labor costs: 

As I noted in the hearing, and as the USPS notes in its December 31, 2017 Form 10-Q filing\ the 

USPS's "costs are heavily concentrated in wages and benefits for both current employees and 

retirees." 

I. In your opinion, what is the role of the USPS Board of Governors in reviewing the 

percentage of operating expenses that are attributable to labor? 

By law, the Board of Governors is responsible for approving all budgets and plans, and 

setting the overall policy for the Postal Service. As such, reviewing and planning for 

operating expenses is an integral part of the job. 

2. Would you be supportive of efforts by the USPS Board of Governors to review and 

conduct comparative analyses of the labor costs of the USPS relative to both its 

'http://about.usps.com/who-we-are/financials/financial-conditions-results-reports/fy2018-ql.pdf 
219 

competitors as well as other public enterprises (such as transit systems, foreign posts, and 

quasi-government agencies such as the Tennessee Valley Authority)? 

Yes, if confirmed, as a Governor I will focus on solving the Postal Service's financial 

crisis, and getting the proper analysis will be a necessary first step. I will support all 

efforts to produce the comparisons, analysis, and research that will allow the Board to 

understand the problem, and if it is not forthcoming, I will use my position to demand it. 

On pricing and organizational transparency: 

1. Would you be supportive of efforts by the USPS Board of Governors to review how 

USPS accounts for and allocates its costs among its various lines of business? 

Specifically, would you support analyses designed to determine whether and to what 

degree USPS "monopoly" products may be cross-subsidizing its competitive (parcel 

delivery) products? Would you support making the results of these analyses available to 

members of Congress and the public? 

It is my understanding that today, by law, the Postal Service's monopoly products cannot 

cross subsidize its competitive products. If confirmed, I would ensure that the Postal 

Service is complying with the law, both the letter and the intent. I also know that the 

Postal Regulatory Commission has a role in ensuring compliance, and I will expect the 

Postal Service to give deference to them, where appropriate. On transparency, I will 

support making as information public as is possible, recognizing the need to preserve 

some information to protect the Postal Service's commercial interests. 

2. Where appropriate and if necessary, would you be willing to assist members of Congress 

in seeking additional information from the U.S. Postal Service on behalf of their 

constituents? 

Yes. 
220 

Ranking Member Claire McCaskill 

Post-Hearing Questions for the Record 

Submitted to the Mr. Calvin Tucker 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April IS, 2018 

POST OFFICE CLOSINGS AND SERVICE CUTS 

Q: Do you support making cuts to USPS mail delivery service or the number of delivery 

days? Why or why not? 

As I testified to in the confirmation hearing, I believe it is essential that we-the 

Governors, Congress, the stakeholders, and the public at large-reexamine the Postal 

Service's business model. As a nation, we have to ask, what do we want the Postal 

Service to do and how do we want to accomplish it? Cutting delivery service in isolation 

would not solve the Postal Service's problems. Reducing the number of delivery days is 

not a solution. But, if reductions are necessary as a part of realigning the business model 

for the 21st century, they also cannot be summarily taken off the table. 

Q: What impact do you think cutting mail delivery service or closing post offices will have 

on rural communities in particular? 

I recognize the vital role the Postal Service plays in rural communities, given the lack of 

alternatives for the citizens. Therefore, if confirmed, I will be very mindful of any change 

and how it will affect our rural communities where changes---depending on the 

proposal--could have a greater potential impact. 

The Postal Service has had to deliver to more addresses every year, but is handling less mail. 

The explosive growth in packages has not come close to filling the void left by declining first 

class mail volumes. 

Q: What steps can the Postal Service take to ensure that it meets its universal service 

obligation, especially in rural America, while also becoming financially self-supporting? 

As I testified to during the confirmation hearing, I believe that the solutions to the Postal 

Service's current problems will be found in building on its strengths. One of its greatest 

strengths is universal service, and the challenge is to find ways to leverage the existing 

infrastructure to meet new needs. Can we better align delivery with the way people are 

living and working today? What new service is the Postal Service uniquely positioned to 

provide (because it goes everywhere and serves everyone) that it is not providing today? 

How can we monetize that for the future? I do not pretend to know the exact answer, but 

I do think that any path back to financial health will rely on universal service. 
221 

ROLE OF THE USPS BOARD OF GOVERNORS 

Q: How do you view the postal service- as a service available to every constituent in the 

country or as a business that must be profitable despite obligations that no private 

company faces? 

l believe that the Postal Service is a basic service provided by the government, available 

to everyone, that by law has been directed to be self-supporting through the sale of its 

products. When Congress created it, the Postal Service was clearly intended to be 

profitable-it was told to be self-supporting. But, at the same time, it is not a business, 

and instead has been given a mandate to provide mail service on a universal basis. In that 

way, Congress has created something that is unique. 

POSTAL SERVICE FINANCES 

Q: Are there provisions of the Postal Accountability and Enhancement Act (P AEA) that 

Congress should consider changing to help improve the Postal Service's ongoing 

financial viability? 

As I previously answered and testified to at the confirmation hearing, l believe that the 

Postal Service's business model must be reexamined, and Congress has its critical role. 

know that there are proposals to reexamine how pensions and retiree healthcare are 

funded, proposals about rates and product flexibility, and ideas about non-postal products 

and governance reform. If confirmed, I look forward to learning more about the specifics 

and how these proposals would interact with one another, but without a more detailed 

examination, specific prescriptions to Congress would be premature. 

Q: Are you aware of the restructuring that the Postal Service has undergone recently, and if 

so, can you briefly describe some of its recent cost-cutting measures? 

I am generally aware of the Postal Service's efforts to reduce costs over the last several 

years. I know that there have reductions in the operating hours at some Post Offices, and 

the Postal Service argues that the new hours were in response to volume and foot traffic 

declines. I know that the overnight letter mail was changed so that First-Class mail 

generally takes two to three days. My understanding is that this allowed for a reduction 

in the number of plants processing mail. 

Q: Could you give a few examples of what additional restructuring of the Postal Service's 

business model you would suggest? 

As I answered previously and testified to in the confirmation hearing, I believe it is 

essential that we-the Governors, Congress, the stakeholders, and the public at largereexamine the Postal Service's business model. This examination must concentrate on 

providing the services the American people need and want, and doing so on a selfsupporting basis (unless Congress, in its role, decides to change this legal requirement). 
222 

To restructure the business model, examples would include increasing revenue, 

decreasing expenses, or most probably, some combination of the two. 

POSTAL REFORM LEGISLATION 

Q: Where do you see the Postal Service in I 0 or 20 years? 

Though the future is hard to predict and technology develops in unforeseeable ways, 

today we are moving to a much more digital world. In that future, the Postal Service will 

play a vital role as the universal service provider that offers delivery connecting the 

digital to the physical. Someone will have to deliver those packages, including delivery to 

places that a purely profit-driven company would ignore. The Postal Service will also 

continue for the foreseeable future to play its role in letter mail for those items that either 

can't be digitized or for those customers who simply prefer paper communication. 

EXECUTIVE ORDER ON POSTAL REFORM 

Last week, the President issued an executive order establishing a commission to examine postal 

reform. The Treasury Secretary was selected to head the commission, but curiously, the Postal 

Service is not represented, nor are any stakeholders like unions, big mass mailers, or Members of 

Congress whose constituents are going to be directly affected by the Commission's findings. 

Q: If confirmed, how will you ensure that the Postal Service is adequately represented in the 

Commission's deliberations and conclusions? 

If confirmed, I look forward to working with the Commission to examine the role of the 

Postal Service and offer reforms. Though the Commission, as announced, did not include 

a direct role for USPS, I expect that it will lean heavily on its knowledge and expertise, 

and so it will be a priority to ensure that the Commission has the information and 

perspective necessary for it to complete its work. 

INTERNATIONAL MAIL 

We have a huge, complex problem right now with illicit opioid manufacturers in China using the 

Postal Service to deliver fentanyl in small packages to the U.S. The Postal Service currently 

receives about I million packages per day, mixed in with millions of pieces of international letter 

mail. By contrast, UPS handled 3 million international packages total in 2017. And the Postal 

Service does not control the data associated with these packages from start to finish the way that 

FedEx and UPS do. Making things even more difficult, the Postal Service is bound by treaty 

obligations that the express shippers do not have to deal with. All of which makes finding a 

solution to this problem extremely complicated. But it's one that we must solve. We need to 

find ways to improve data collection and screening capabilities. 

Q: If confirmed, will you take some time to get up to speed on the issue and present some 

formal recommendations and a path to start to resolve this issue? 
223 

Yes, if confirmed, one of my priorities will be to ensure that the Postal Service is doing 

everything possible to keep illicit, harmful or dangerous items out of the mail. 
224 

Senator Tom Carper 

Post-Hearing Questions for the Record 

Submitted to Mr. Calvin Tucker 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April IS, 2018 

I. In 2017, the independent Postal Regulatory Commission (PRC) found that parcels contributed 

$7 billion more in revenue to the Postal Service than they cost to process deliver. In fact, 

according to PRC calculations, the share of institutional costs covered by competitive products 

has quadrupled over the last decade. This tells me that these products are not being 

subsidized, as has been suggested. Instead, parcels appear to be extremely profitable for the 

Postal Service and are helping defray the cost of universal mail service. I believe that growing 

parcel revenues helps to stabilize the Postal Service's finances and protects the Postal 

Service's ability to meet the obligation we place on it to deliver First Class Mail and other 

products to every address in the country. 

What are your views on this issue? Given the universal service obligation and the growing 

cost of Postal Service liabilities, what would you propose that the Postal Service do to make 

its package products more competitive and more profitable? 

By law, the Postal Service must support itself only through the sale of its products and 

services. In some products-like packages and parcels--it competes against private 

industry, while in other segments-like First-Class mail-it has a statutory monopoly. 

It has certain other advantages that private industry does not enjoy. On top of all of 

this, the Postal Service alone has a universal service obligation to serve all parts of the 

nation on an equal basis. Without the benefit of knowing the proprietary details 

available to the Postal Service and the PRC, we should trust the judgement of the 

PRC, which seems to me to have earned a reputation for objectivity. If confirmed, I 

would look fmward to learning more details, but I would be mindful that the Postal 

Service is must provide universal service supported by certain monopoly products 

(which it should not abuse) and by competing in the marketplace (which it should do 

fairly). 

To make its package products more competitive and profitable, the Postal Servicelike any commercial enterprise-must focus on providing products that customers will 

value at prices that will attract sales. If confirmed, I look fmward to learning how this 

balance was set for its current products and whether new options or differently priced 

products could better serve customers. As I said during my confirmation hearing, I 

believe that the solutions to the Postal Service's difficulties will be found by relying on 

its strengths to better meet the needs of the American people. 

2. The Postal Service's affordable delivery of packages is an economic lifeline to many 

Americans. I am concerned that any effort to make the Postal Service charge more for 
225 

package delivery will harm, not help, small businesses and consumers, especially rural 

business and consumers who may not have access to any affordable alternatives. Can 

you speak to your commitment to ensuring rate stability and predictability when it comes 

to the Postal Service's package products? Do you agree it is essential to preserve 

universal access to affordable package delivery services? 

It is my understanding that most of the Postal Service's package products are provided 

as competitive products--that is, they are meant to compete against the other national, 

regional and local providers of delivery services. In this case, rate stability and 

predictability is a competitive advantage because ignoring those factors would only 

drive customers into the arms of the Postal Service's competitors. 

I also understand that, given how rate changes for competitive products are approved 

and regulated, even in those markets where the Postal Service may be the only option, 

these customers enjoy the benefits of competition because rates are set at the national 

level. But, even if that was not the case, I believe that universal access is the Postal 

Service's essential characteristic-its whole reason for being in the first place. If 

confirmed, I would be committed to a USPS that serves everyone on an equal footing, 

and I agree that it is essential that we preserve universal access. 

3. As you know, the Board of Governors has been completely vacant since the end of2015 

and without a quorum since 2014. If confirmed, what steps will each of you take to 

evaluate the status of the Postal Service and the steps that need to be taken in the coming 

months to address both its short-term and long-term financial challenges? Given that no 

single part-time governor can possibly focus on everything, what will your main areas of 

interest be? 

You are right to recognize that this will be a challenging task, but if confirmed, I 

would focus on understanding the causes of the Postal Service's financial crisis 

and evaluating the options to address it. In this effort, I expect to rely heavily on 

Postal Service subject matter experts, but I will be mindful that my role is to 

challenge assumptions and judge from the perspective of the broad public interest. 

More directly, and I as I testified to during the confirmation hearing, I will focus 

on how the Postal Service is addressing the needs of small businesses and 

community groups and how meeting the needs of those segments can play a role 

in reviving the Postal Service as a whole. 

4. As you know, the Board of Governors is charged with hiring and overseeing the work of 

the postmaster general and other senior postal managers. If confirmed, what steps will 

you take to evaluate the team in place today? Going forward, what qualities would you 

look for when looking to fill key positions? 

If confirmed, I will strive to fairly evaluate the current management, but I believe 

we should focus on the future. Given that Governors have the responsibility of 

setting the goals and policy while management is responsible for executing those 
226 

directions day-to-day, I believe it will be fair to evaluate how well plans have 

been executed from my personal observation. 

In the future, I believe we should look for candidates who have a bold vision for 

the Postal Service and who can bring those plans to reality. 
227 

Senator Doug Jones 

Post-Hearing Questions for the Record 

Submitted to Mr. Calvin Tucker 

Nominations of Honorable David C. Williams, Calvin Tucker, 

and Robert M. Duncan to be Governors, U.S. Postal Service 

April18, 2018 

A Postal Service Reform Act pending in the House would require the appointment of a Chief 

Innovation Officer to manage development and implementation of innovative postal and nonpostal products and services. 

What sorts of innovative non-postal services do you think are appropriate for the Postal Service 

to provide? 

As I testified to during the confirmation hearing, I believe the solutions to the Postal 

Service's current problems will be found in relying on its strengths. So, when I think 

about innovations, I believe the proper place to begin is to ask, what does the Postal 

Service do well, today, and how can we build on that? How can we use the current 

infrastructure (the post offices, processing plants, delivery routes) and products to 

provide more value to the American people? If confirmed, and if Congress expands the 

scope of those services the Postal Service may provide, I believe the Postal Service 

should look first to expanding and leveraging its core business. 
228 

Æ 

Operating Revenue 

Cash Operating Expense 

Workers' Comp (FECA) 

Retiree Health Annual 

Retiree Pension Annual 

Total Operating Expense 

Cash Operating Income 

Depreciation 

Operating Income (Loss) 

Healthcare Prefunding 

Pension Prefunding 

Total Prefunding 

USPS Reported Income (Loss) 

Cash Flow Adjustments 

Non-Cash Adjustments 

Change in FECA Liability 

Depreciation 

Subtotal 

Cash Flow Before Retiree Default 

Retiree Prefunding Default 

Retiree Current Default 

Total Default 

Increase (Decrease) in Cash 

Source: USPS Annual 1 Oks 

USPS Income Statement 

(in billions of dollars) 

FY2007 FY2017 

$74.8 $69.6 

($61.3) ($57.4) 

($.9) ($.8) 

($1.7) -

($5.7) ($6.6) 

($69.6) ($63.3) 

$5.2 $6.4 

($2.2) ($1.7) 

$3.0 $4.7 

($8.4) ($4.6) 

($2.7) 

($8.4) ($7.3) 

($5.3) ($2.6) 

$.5 $.2 

($2.2) 

$2.2 $1.7 

$2.5 ($.3) 

($2.8) ($2.9) 

$4.6 

$2.7 

- $7.3 

($2.8) $4.4 

Total 

FY 2007-2017 

$761.0 

($625.8) 

($22.6) 

($25.1) 

($66.4) 

($739.9) 

$21.1 

($22.5) 

($1.4) 

($59.4) 

($3.1) 

($62.5) 

($63.9) 

($1.3) 

$9.5 

$22.5 

($30.8) 

($33.192) 

$38.5 

$3.2 

$41.7 

$8.5