OFFICE OF

INSPECTOR

GENERAL

UNITED STATES POSTAL SERVICE

Nationwide Facility Optimization

Audit Report

Report Number DA-AR-11-009

August 26, 2011
IMPACT ON: 

Facilities management, Operations 

management, lessors, and customers.

WHY THE OIG DID THE AUDIT: 

Our objective was to highlight the extent 

of and main reasons for excess space in 

U.S. Postal Service facilities nationwide.

WHAT THE OIG FOUND: 

The Postal Service has a greater 

opportunity to reduce interior space than 

its fiscal year (FY) 2011 target of 2.8 

million square feet (SF), or 1 percent. 

From 284 million SF of interior space it 

owns or leases nationwide, we 

statistically projected the Postal Service 

maintains 67 million SF (or 24 percent) 

of excess square feet of interior space. 

This level of excess is more than the 

current commercial vacancy rate of 13.4 

percent.

To better establish strategic targets in 

line with the presidential and 

congressional direction, the Postal 

Service needs to understanding the 

extent of underused property, 

incentivize effective use of facility space, 

and enhance the disposal process and 

leasing procedures. If it disposes of its 

excess space, the Postal Service could

realize at least $3.48 billion nationwide 

over typical and remaining lease terms.

WHAT THE OIG RECOMMENDED: 

We recommended the vice president, 

Facilities, use Building Operators 

Management Association or comparable 

standards to determine leasable space 

and the Postal Service’s Facility 

Planning standards to determine earned 

space. In addition we recommend 

revising the vice president, Facilities, 

Report Card to include measurement in 

square footage terms and seek to 

include facility optimization goals as part 

of the National Performance 

Assessment. 

 

WHAT MANAGEMENT SAID: 

Facilities management appreciated the 

ongoing work in the facilities 

optimization area and stated it is a 

critical and important initiative in the 

Postal Service. Management stated they 

are using a comparable standard based 

on operational need and Facility 

Planning standards to calculate excess 

space. Management also stated they

will incorporate the reduction of interior 

square footage as a measurement into 

its Report Card beginning in FY 2012 

and will pursue the possibility of 

incorporating optimization goals into the 

National Performance Assessment. 

AUDITORS’ COMMENTS 

We acknowledge Postal Service's

efforts to establish metrics for excess 

space at its facilities. However, without 

addressing leasable space in 

accordance with a realty standard, their 

actions to date are non-responsive to 

recommendation 1. Management’s plan

for establishing goals for space 

reductions for both the facility and 

operational functions is responsive to 

recommendation 2.

Link to review the entire report.

August 26, 2011 

Nationwide Facility Optimization

Report Number DA-AR-11-009
 

August 26, 2011 

MEMORANDUM FOR: TOM A. SAMRA 

VICE PRESIDENT, FACILITIES

 

E-Signed by Mark Duda

VERIFY authenticity with e-Sign

 

FROM: Mark Duda

Deputy Assistant Inspector General 

 for Support Operations

SUBJECT: Audit Report – Nationwide Facility Optimization 

(Report Number DA-AR-11-009) 

This report presents the results of our audit of the U.S. Postal Service’s Nationwide

Facility Optimization program (Project Number 11YG031DA000).

We appreciate the cooperation and courtesies provided by your staff. If you have any 

questions or need additional information, please contact Miguel Castillo, director, 

Engineering and Facilities, or me at 703-248-2100. 

Attachments

cc: Megan J. Brennan

Dean J. Granholm

David E. Williams

Corporate Audit and Response Management
TABLE OF CONTENTS

Introduction ..................................................................................................................... 1

Conclusion ...................................................................................................................... 1

Reasons for Significant Excess Space............................................................................ 2

Understanding the Extent of Excess Space................................................................. 2

Incentivizing Effective Space Utilization Through Performance Measures .................. 4

Recommendations .......................................................................................................... 4

Management’s Comments .............................................................................................. 4

Evaluation of Management’s Comments......................................................................... 5

Other Matters – Disposition Process and Procedures Can Be Enhanced....................... 6

Sales............................................................................................................................ 6

Leasing........................................................................................................................ 6

Appendix A: Additional Information ................................................................................. 8

Background ................................................................................................................. 8

Objective, Scope, and Methodology ............................................................................ 9

Prior Audit Coverage ................................................................................................. 10

Appendix B: Monetary Impact ....................................................................................... 12

Appendix C: Management’s Comments........................................................................ 13
Nationwide Facility Optimization DA-AR-11-009

1 

Introduction

This report presents the results of our self-initiated nationwide audit addressing 

operational risk in the area of facility optimization (Project Number 11YG031DA000). 

Our objective was to highlight the extent of and main reasons for excess space in 

U.S. Postal Service facilities nationwide. See Appendix A for additional information

about this review.

A Presidential Memorandum dated June 10, 2010, titled Disposing of Unneeded 

Federal Real Estate is intended to make better use of real property assets by 

eliminating lease arrangements that are not cost effective, pursuing consolidation 

opportunities within and across agencies in common asset types, and increasing

occupancy rates in current facilities through innovative approaches. In an effort to 

reduce costs associated with maintaining unneeded and underused federal buildings 

and generate revenue through the sale of such properties, the U.S. Congress is also 

considering a comprehensive real property reform bill.1

The Postal Service leases or owns more than 33,000 facilities with approximately 284

million interior square feet (SF) to move mail across the country. With three major 

efforts2 underway, the Postal Service has taken action to optimize existing space. The 

Postal Service’s fiscal year (FY) 2011 target3

2.8 million SF, or 1 percent of the 284 million SF currently in its real estate inventory.

Given the current financial position of the Postal Service, we believe it is critical to 

continue taking advantage of technology and improved processes to optimize excess 

capacity in plants, post offices, and delivery units.

is to reduce total interior facility space by 

Conclusion

We statistically projected that the Postal Service maintains 67 million SF (or 24 percent) 

of excess square footage nationwide. This level of excess is more than the current 

commercial vacancy rate of 13.4 percent. The Postal Service has a much greater 

opportunity to aggressively optimize excess space through disposal or leasing than its 

FY 2011 target for reducing interior space. 

To better establish strategic targets in line with the presidential and congressional 

direction, the Postal Service needs to overcome the challenges of:

 Understanding the extent of excess space. 

 Incentivizing the effective use of facility space with the appropriate performance 

measurements. 

 

1 Civilian Property Realignment Act (H.R. 1734) introduced May 4, 2011. 2 Facility Optimization, Station, and Branch Optimization and Consolidation (SBOC), and Delivery Unit Optimization 

(DUO) programs.

3 U.S. Postal Service 2010 Comprehensive Statement on Postal Operations. 
Nationwide Facility Optimization DA-AR-11-009

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 Enhancing the disposal process and leasing procedures.

 

We estimate that if the Postal Service initiates disposal4 action for the excess space we 

identified, there is an opportunity to realize at least $3.48 billion5 nationwide over typical

and remaining lease terms. This amount is not a liquid cash amount but represents a 

calculated 10-year savings in lease, custodial, and utility costs. We consider 

$1.99 billion as funds put to better use6

Appendix B

as we have already reported $1.49 billion in 

previous optimization audits. See for a summary of our monetary impact.

Reasons for Significant Excess Space

Understanding the Extent of Excess Space

The Postal Service does not understand the extent of interior excess space in its 

facilities. This is because they do not fully capture leasable and earned SF to enable the 

calculation of excess space. In particular, Postal Service does not systemically capture

leasable SF as a metric for its facilities. Since the Postal Service owns more than twothirds of the total interior square footage in its facility inventory, by not capturing

leasable SF for owned property it cannot readily measure and manage excess space 

beyond what is needed or ‘earned’ for operations. For leased property, we assume that 

the interior square footage measured and systemically captured can be used as the 

basis for documenting leasable SF and in quantifying excess space. 

Secondly, the Postal Service does not currently have standards to identify ‘earned’ 

space for its mail processing facilities. As a result, we are unable to determine the 

amount of excess space, unless we visited processing facilities. The Postal Service is 

currently evaluating its mail processing network to identify any opportunities for 

consolidation. Without a case-by-case evaluation to establish space needs, the Postal 

Service cannot readily identify how much of interior space at its processing facilities is 

excess and leasable.

Our research indicates that the majority of realty management organizations — 

including the General Service Administration — reference Building Operators 

Management Association (BOMA) standards for measuring leasable square footage. 

Additionally, our research indicates BOMA and aspects of the Postal Service’s Facility 

Planning standards can be used as standards for determining leasable and earned7

space, respectively. 

Because the Postal Service does not reliably calculate excess square footage for each 

facility, we used the formula of interior square footage less earned space to project

 

4 Disposal actions available include sale, termination of lease, consolidation, and/or subleasing. At a minimum, the

Postal Service can out-lease or initiate a sublet action for owned or leased property, respectively. 5 This is the net present value of this impact calculated in today’s dollars. 6 Funds that could be used more efficiently by implementing recommended actions. This amount does not include

excess square footage that is part of an approved node study.

7 We based the earned facility size on Postal Service criteria for planning new space projects using the number of 

carrier routes, the number of rented post office box sections, and peak window use.
Nationwide Facility Optimization DA-AR-11-009

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excess space for Post Offices nationwide. In addition, we relied on site surveys to 

determine excess space at processing facilities. In our prior audits issued, we estimated 

more than 21 million SF of excess space for districts evaluated. Chart 1 summarizes the 

amount of excess space by area office for the 20 districts randomly selected and 

evaluated. 

Chart 1 – Prior Audit Excess Space Identified

Area Districts 

Reviewed 

Randomly

Sites 

Visited

Sites 

Visited 

with 

Excess > 

100 SF8

Excess SF 

Identified

Capital Metro 1 30 77% 1,175,094

Eastern 3 72 97% 2,800,121

Great Lakes 2 83 88% 1,442,962

Northeast 2 89 83% 4,389,257

Pacific 2 102 94% 1,782,811

Southeast (former) 3 118 92% 2,894,902

Southwest 2 65 91% 2,362,328

Western 5 158 83% 4,538,440

Total 20 717 21,385,915

After pilot audits in three districts, we expanded the scope nationwide by randomly 

selecting 17 districts for review. We statistically projected these results over the 

remainder of Postal Service districts and estimated that excess space in facilities 

nationwide is approximately 24 percent of the total interior square footage. This 

percentage of excess space exceeds the national commercial property vacancy rate of 

13.4 percent, as calculated by the National Association of Realtors (NAR). According to 

the NAR’s Quarter 2 of FY 2011 Commercial Real Estate Outlook publication, demand 

for commercial space is on the rise as real estate markets are stabilizing, jobs are being 

created, and the unemployment rate is expected to drop. In recent years, levels of new 

construction have been low, which means the demand for existing space will rise and 

vacancy rates will drop. We believe the Postal Service may be in a position to capitalize 

on the upward trend to dispose of its vacant space.

 

8 We excluded excess measurements of less than 100 SF from monetary impact calculations.
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Incentivizing Effective Space Utilization Through Performance Measures

Operations performance measures are captured on the National Performance 

Assessment (NPA), which is a web-based system that collects performance-related 

metrics (such as retail revenue, on-time express mail delivery, and so forth) from source 

systems across the organization. These metrics are translated into web-based balanced 

scorecards that can be used to monitor the performance of both the entire enterprise 

and of individual units across the nation. 

Facilities performance measures are captured on the Vice President (Facilities) Report 

Card. The vice president developed this report card to measure the performance of 

programs such as optimization, energy, leases, and development of employees. Each 

program develops its respective performance metrics, and the report card is adjusted 

annually. 

Although Facilities’ goals recognize the total number of building inventory reductions, 

the report card does not have a performance metric associated with reducing excess 

space. Similarly, NPA performance measures do not include square footage

performance measures. Therefore, if neither facilities nor operations have goals based 

on the reduction square footage, there is less incentive to effectively use existing facility 

space.

Recommendations 

We recommend the vice president, Facilities:

1. Use the Building Operators Management Association or comparable standards to 

determine leasable space and update the Postal Service’s Facility Planning 

standards for determining earned space. These factors should be the basis for 

calculating the extent of excess space in the management reporting system.

2. Revise the vice president, Facilities, Report Card to include measurement in square 

footage terms and seek to include facility optimization9

 goals as part of the National 

Performance Assessment.

Management’s Comments

Facilities management appreciates the ongoing audit work relating to facilities 

optimization and stated it is a critical and important initiative in the Postal Service.

In regard to recommendation 1, management stated they currently use a comparable 

standard based on operational need and Facility Planning standards. Facilities eFMS 

uses an algorithm to calculate the excess space, which is now recorded as potential 

usable excess workroom square footage. Potential excess space is amended and 

recorded as evaluated usable excess square footage after the building configuration 

and constraints of the space are analyzed. In regard to recommendation 2, 

 

9 Optimization actions include disposal, outleasing, subleasing, and development.
Nationwide Facility Optimization DA-AR-11-009

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management is reporting monthly reduced square footage to the chief operating officer, 

but will incorporate it into the Facilities Report Card at the beginning of FY 2012. 

Further, they will pursue with senior management the possibility of incorporating 

optimization goals into the National Performance Assessment. 

Management did not agree with the amount of excess space or the potential monetary 

impact reported. Specifically, they disagreed with the method we used to calculate the 

value of excess space, as they have outlined in the previous optimization audits. See 

Appendix C for management’s comments in their entirety.

Evaluation of Management’s Comments

In reference to recommendation 1, we acknowledge management’s efforts to establish 

metrics that bring transparency to the extent of facility excess interior space.

Specifically, Postal Service calculation of potential useable excess space implemented

during the audit is similar to the metric used by the OIG to determine total excess

space. However, the difference of opinion from the inception of our optimization audits 

has centered on leasable versus useable space. The intent of recommendation 1 is to 

establish realty standards for building measurements. Industry standards such as 

BOMA define leasable rather than useable square footage. 

Management did not explicitly address leasable space measurements in their 

management comments. Management did subsequently clarify that useable space is a 

subset of leasable space that does not require reconfiguration costs. Without measuring 

leasable space for their properties using a recognized reality standard, the Postal 

Service will not know the maximum extent of square footage that can be optimized. 

Thus, we agree with management’s algorithm for capturing potential excess useable 

space but express reservation whether facility staff can more accurately indicate excess 

space; albeit without a realty measurement standard to ensure consistency. Thus, we 

consider management’s comments non-responsive to recommendation 1. 

In reference to recommendation 2, establishing goals for space reductions for both the 

facility and operational functions will also promote transparency of the Postal Service’s 

achievements in reducing excess facility space. Management comments are 

responsive to recommendation 2 and planned actions should address the issues 

identified in the report. 

The OIG considers both recommendations significant, and therefore requires OIG 

concurrence before closure; consequently, the OIG requests written confirmation when 

corrective actions are completed. These recommendations should not be closed in the 

Postal Service’s follow-up tracking system until the OIG provides written confirmation 

that the recommendations can be closed.
Nationwide Facility Optimization DA-AR-11-009

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Other Matters – Disposition Process and Procedures Can Be Enhanced

Sales

In a prior audit of controls over the selling of assets,10 we found the Postal Service did 

not always obtain best value, because internal controls over real estate disposals 

needed strengthening. In some instances, the Postal Service did not receive the 

optimum value because of leasing back property, selling property below book or market 

value, losing an opportunity to maximize revenue, and accepting a deferred payment 

plan. 

The Postal Service could have realized more sales revenue if it had specific guidelines 

requiring leaseback cost comparisons or governing prospective sales that result in less 

than the fair market value. In addition, the Postal Service could have benefited more in 

instances where sales value was not optimized. We recommended that management

develop updated procedures over the sale of assets, including evaluating the net 

present value of alternatives before the sale and enhancing procedures to ensure the 

Postal Service obtains the best value.

Leasing

Postal Service procedures as described in Handbook RE-1,11 Sections 7.4.8, “Sales 

Procedures,” and 7.5, “Outleasing,” provide the basic framework for disposing of surplus 

Postal Service property, but a checklist or guidelines to ensure consistent application of 

the policy throughout the Postal Service did not exist. Furthermore, the December 2010 

update to Handbook RE-1 states that Chapter 7, Realty Asset Management, is 

undergoing a revision.

As such, a contractor12 we worked with developed lease process guidelines that include

a checklist based on “best practices” that can be used to prepare property for leasing in 

order to maximize revenue. The process steps include: evaluating property for leasing 

at the highest and best use; developing a plan of action, including selecting a broker 

and developing marketing and construction plans; and negotiating the lease, executing 

the documents, and filing the forms.

The contractor made recommendations for a realty disposition process, which we have 

summarized. Specifically: 

 When establishing a disposition plan for excess space, consider economic and 

strategic factors by using a decision matrix to assist in evaluating all available 

alternatives for the use of that excess space.

 

10 Audit report, Facilities Optimization: Controls Over the Selling of Assets (Report Number DA-AR-10-004, dated

June 1, 2010.

11 U.S. Postal Service Facilities Guide to Real Property Acquisitions and Related Services, May 2006, Section 7, 

Realty Asset Management.

12 Facility Utilization Study, Task Order SO-11-001, prepared by NGI Solutions.
Nationwide Facility Optimization DA-AR-11-009

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 Once space has been determined to be leasable, use a checklist designed to assist 

with prioritizing spaces to be leased and preparing the space to be leased, and, 

ultimately, guiding the lease process to its conclusion. 

Although we recognize the Postal Service uses computer modeling to factor economic 

and strategic considerations in optimization decisions, it can also consider the

contractor’s ‘best practices’ as it revises its realty asset management policy. We believe 

that the suggested contractor’s guideline would be beneficial and provide an actionable 

checklist on how to dispose of excess space across the organization.
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Appendix A: Additional Information

Background 

The Postal Service leases or owns more than 33,000 facilities with approximately 284

million interior SF to move mail across the country. The consolidation or closure of 

facilities is a widely discussed topic. For example:

 U.S. Congress prohibits the Postal Service from closing facilities solely for operating 

at a deficit. 

 Labor unions have well-organized campaigns to oppose consolidation or closure 

efforts. 

 Lessors are concerned with protecting their investments in Postal Service facilities.

 Using social media, local communities have started grassroots efforts to save local 

post offices. 

The Postal Service’s Facilities and Retail Management organizations have continuously

implemented initiatives to optimize space. In April 2008, the vice president of Facilities 

initiated the Facility Optimization Program to balance the portfolio of existing delivery 

facilities with the Postal Service’s current and projected space needs. The process 

entails identifying, investigating, analyzing, and approving space before executing the 

approved optimization action. Established in May 2009, the SBOC program provides 

tools and strategies to evaluate the effectiveness of Postal Service retail placement in 

support of the Transformation Plan’s goals of improved service and increased revenue. 

In March 2010, the Postal Service issued its action plan for the next decade titled 

Ensuring a Viable Postal Service for America, which provides a fundamental framework 

to address long-term financial viability issues. The plan consists of two complementary 

but distinct categories of necessary action: actions that are within management’s control

(that is, that can be taken by the Postal Service without the need for regulatory or 

legislative intervention) and those structural, systematic changes that require regulatory 

or legislative action to implement. In October 2010, the Postal Service consolidated 

optimization efforts to manage excess space. The goal is to manage the excess space 

portfolio for all space types in one overall optimization initiative. This integrated effort 

between Facilities Headquarters and the field offices will use computer modeling and 

equipment analysis along with local analysis and metro planning to form a headquarters

and district/area partnership. In addition, the Postal Service initiated the DUO process in 

December 2010 to establish methods for relocating delivery operations into a larger 

office with excess space to increase operational efficiencies. The DUO Guidelines serve 

to facilitate uniform implementation across the country and includes detailed process 

steps and a process checklist.
Nationwide Facility Optimization DA-AR-11-009

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The Postal Service has the option to optimize excess real property through:

 Disposal – selling property.

 Outleasing – leasing owned property.

 Subleasing/Reassignment – reassigning leased property.

 Development – investing in real estate projects.

Objective, Scope, and Methodology

Our objective was to highlight the extent of and main reasons for excess space in Postal 

Service facilities nationwide. To accomplish our objective we visited selected facilities, 

conducted interviews, and examined other relevant materials. Additionally, we contracted 

with a third party to provide insight into managing excess space when the Postal 

Service’s realty management practices are compared to commercial and federal agency 

practices. We worked with the OIG experts to statistically project the monetary impact 

reported in our previous audits over the rest of the country to identify the extent of excess 

space across the nation.

We conducted this performance audit from May to August 2011 in accordance with 

generally accepted government auditing standards and included such tests of internal 

controls as we considered necessary under the circumstances. Those standards require 

that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a 

reasonable basis for our findings and conclusions based on our audit objective. We 

believe that the evidence obtained provides a reasonable basis for our findings and 

conclusions based on our audit objective. We discussed our observations and 

conclusions with management on July 18, 2011, and included their comments where 

appropriate.

We assessed the reliability of the data used to project the results over the universe 

during our previous audits on facility optimization, and we determined it to be sufficiently 

reliable; therefore, there was no need to reassess the reliability of the data.
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Prior Audit Coverage

The OIG has issued 10 reports related to the overall objective of identifying potential 

optimization opportunities for the Postal Service. The audit reports identified that the 

Postal Service could be more aggressive in reducing excess space and found more 

than 21 million excess SF. Management generally agreed with our findings and 

recommendations but did not agree with the amount or value of the excess space in our 

prior reports. We also reported that leasing excess space to federal entities is another 

option to reduce excess space. In this endeavor, the Postal Service would need to 

enhance internal controls over collecting rental income to effectively expand tenancy 

agreements.

Report Title Report Number

Final 

Report 

Date

Monetary 

Impact Report Results

Internal 

Controls Over 

Facility Rental 

Income

DA-MA-11-003 6/17/2011 $1,532,533 The OIG identified 

noncompliance with policies 

governing rental income and 

significant payment integrity 

issues resulting in at least $1.5 

million of rental income at risk. 

The Postal Service agreed with 

the findings and 

recommendations.

Facility

Optimization: 

Pacific Area

Districts

DA-AR-11-006 5/13/ 2011 $172,248,822 The OIG identified 1.7 million SF 

of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.

Facility

Optimization: 

Former 

Southeast Area

Districts

DA-AR-11-007 5/13/2011 $151,624,144 The OIG identified 3 million SF 

of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.

Facility

Optimization: 

Great Lakes

Area

DA-AR-11-005 4/22/2011 $19,977,519 The OIG identified 700,000 SF 

of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.

Facility

Optimization: 

Southwest Area

DA-AR-11-003 3/1/2011 $99,618,007 The OIG identified 2.3 million 

SF of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.
Nationwide Facility Optimization DA-AR-11-009

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Report Title Report Number

Final 

Report 

Date

Monetary 

Impact Report Results

Facility 

Optimization: 

Capital Metro 

Area

DA-AR-11-004 2/25/2011 $36,312,795 The OIG identified 1.17 million 

SF of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.

Facility 

Optimization: 

Eastern Area

DA-AR-11-002 2/11/2011 $190,656,882 The OIG identified 2.8 million SF 

of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.

Facility 

Optimization: 

Western Area

DA-AR-11-001 2/7/2011 $173,835,881 The OIG identified 4.5 million SF 

of excess space. The Postal 

Service agreed with the 

recommendations but disagreed 

with the monetary impact.

Excess Space 

in Mail 

Processing 

Facilities in the 

Suncoast 

District

EN-AR-11-001 11/10/2010 $19,396,129 The OIG found there were 

various opportunities to improve 

the use of space at plants in the 

Suncoast District, such as plant 

consolidations or relocating 

retail operations. The Postal 

Service agreed with the 

recommendations.

Facility

Optimization: 

New York 

District

DA-AR-10-010 8/25/2010 $446,258,222 The OIG identified 2.4 million SF

of excess space. The Postal 

Service agreed with 

recommendations but disagreed 

with monetary impact.

Facility

Optimization: 

Chicago District

DA-AR-10-009 8/25/2010 $23,517,019 The OIG identified 740,529 SF

of excess space. The Postal 

Service agreed with 

recommendations but disagreed 

with the monetary impact.

Facility

Optimization: 

Northern New 

Jersey District

DA-AR-10-008 8/25/2010 $157,963,990 The OIG identified 1.98 million 

SF of excess space. The Postal 

Service agreed with

recommendations but disagreed 

with the monetary impact.

Facilities 

Optimization: 

Controls Over 

the Selling of 

Assets 

DA-AR-10-004 6/1/2010 $3,961,034 The OIG found the Postal 

Service did not obtain best value 

in all facility disposal 

transactions in FYs 2008 and 

2009. The Postal Service 

agreed with the 

recommendations but disagreed 

internal controls were weak.
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Appendix B: Monetary Impact

Statistical Projection Data

MONETARY BENEFITS

Nationwide Value of Excess Space (projected results plus results from 

three survey audits) $3,483,756,908

Less: Area audit results (reported monetary impact from seven area 

audit reports) $844,274,050

Less: Survey audit results (reported monetary impact from three survey 

audits) $627,739,231

Less: Other district audit results (reported monetary impact from a 

network operations audit) $19,396,129

TOTAL MONETARY IMPACT (Funds Put to Better Use)13 $1,992,347,498

 

13 Funds that could be used more efficiently by implementing recommended actions.
Nationwide Facility Optimization DA-AR-11-009

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Appendix C: Management’s Comments
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