Agencies deposit funds in an account with the USPS, and the account is charged for the amount of postage incurred on a specific mailing. Due to its limitations, this method of paying postage is not appropriate for all mail. When it can be used, however, agencies save the staff time required to meter envelopes prior to mailing. All of these variables lead to confusion and inefficiency at many agencies. Staff who design and produce mailings typically are not experienced in achieving cost-effective mail operations.
Significant expertise is required to analyze the numerous important aspects of mail operations.
A reengineering of state agency mailing practices would produce savings through reduced volume and increased effectiveness. The Council on Competitive Government should enter into a contract with a qualified vendor to reengineer agency mail operations. The vendor should be paid a designated percentage of agency savings, as identified and approved by the council. An initial pilot program should focus on current mail practices of a handful of agencies with large volumes of mail. The review should also analyze the need for an agency outgoing mailroom.