U.S. Postal Service: Action Needed to Maximize Cost-Saving Potential of Alternatives to Post Offices
Published: 2011-11-17T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: Declines in mail volume have brought the U.S. Postal Service (USPS) to the brink of financial insolvency. Action to ensure its financial viability is urgently needed. Visits to post offices have also declined, and in an effort to cut costs, USPS is considering closing nearly half of its 32,000 post offices by 2015. In their place, alternatives to post offices, such as the Internet, self-service kiosks, and partnerships with retailers, are increasingly important for providing access to postal services. Retail alternatives also hold potential to help improve financial performance by providing services at a lower cost than post offices. As requested, this report discusses how (1) USPS's efforts to expand access through retail alternatives support its service and financial performance goals, (2) USPS communicates with the public about retail alternatives, and (3) USPS oversees its retail partners. To conduct this work, GAO analyzed USPS documents and data and interviewed USPS officials and stakeholders. GAO also interviewed operators of postal retail partnerships.
section_title: What GAO Found
paragraphs: USPS has expanded access to its services through alternatives to post offices in support of its goals to improve service and financial performance. Retail alternatives offer service in more locations and for longer hours, enhancing convenience for many customers, but certain characteristics of these alternatives could be problematic for others. For example, services obtained from some alternatives cost more because of additional fees, which could deter use by price-sensitive customers. Furthermore, although about $5 billion of its $18 billion in fiscal year 2010 retail revenue came from alternatives, USPS officials said it is too early to realize related cost savings. USPS also lacks the performance measures and data needed to show how alternatives have affected its financial performance. A data-driven plan to guide its retail network restructuring could provide a clear path for achieving goals. Without such a plan, USPS may miss opportunities to achieve cost savings and identify which alternatives hold the most promise. USPS has sought to raise customers' awareness by developing media campaigns, enhancing its online tools for locating postal access points, and creating standard symbols for post offices and retail alternatives to show which products and services they offer. However, USPS has not assessed whether its message is reaching its customers, such as by using one of its existing customer surveys, and therefore does not know to what extent customers are aware of and willing to use its various retail alternatives. Although the public increasingly uses postal retail alternatives, more widespread adoption will be needed if USPS is to close thousands of post offices as planned in the next few years. USPS has projected that by 2020 alternatives to post offices will account for 60 percent of its retail revenue. USPS's oversight of its retail partners, which includes entering into written agreements with them and providing training and guidance, could be improved if USPS modified its approach to monitoring compliance with its procedures. Local USPS officials are supposed to conduct quarterly reviews of retail partners to make sure they are following mailing procedures, but according to retail partners and USPS officials in field and local offices, these reviews do not always occur as often as intended because of resource constraints. A risk-based monitoring approach would allow targeting limited USPS oversight resources to areas of concern and thus address issues that could otherwise discourage customers from adopting retail alternatives, such as inadequate service. USPS should develop a plan to guide its retail network restructuring that is supported by relevant performance measures and data and includes a method to assess the effectiveness of its public communication strategy. USPS should also implement a risk-based approach to monitoring retail partners. USPS reviewed a draft of this report and stated it is developing a plan to guide its retail network restructuring and agreed to review how it monitors retail partners.

section_title: Letter
paragraphs: The U.S. Postal Service (USPS) is on the brink of financial insolvency as  it faces a continuing decline in the overall demand for its products and  services. USPS has reported that about 80 percent of its postal retail  facilities do not generate sufficient revenue to cover their costs, yet this  network of about 32,000 post offices has remained largely unchanged.  As customers increasingly turn to digital communications and payment  methods, mail volume has decreased precipitously, dropping almost 20  percent from its 2006 peak of 213 billion pieces to about 170 billion  pieces in fiscal year 2010. USPS projects a total decrease of 37 percent  from the 2006 peak by 2020. This decline in mail volume is reflected in  USPS’s worsening financial condition: In fiscal year 2010, USPS recorded  a loss of $8.5 billion. At the end of fiscal year 2011, USPS expected to  reach its statutory borrowing limit of $15 billion. In addition, the  Postmaster General has testified that USPS would not be able to pay its  statutorily mandated retiree health benefits payments that were due on  September 30, 2011, and Congress delayed the payment due date until  November 18, 2011.
Action to modernize USPS’s retail network is urgently needed to help  bring USPS’s costs in line with its revenue, and in 2011 USPS announced  plans to review thousands of post offices for potential closure in the next  few years. Alternatives to obtaining services at post office windows,  including self-service options and partnerships with retailers, could help  USPS contain facility and labor costs while still providing access for  customers. In its March 2010 Action Plan, USPS included expanding  access through retail alternatives as part of its overall strategy to return  USPS to financial solvency. USPS stated that its effort to expand access  through retail alternatives supports two of its agencywide strategic goals:  (1) to improve service by offering its products and services in more  convenient places where customers already work, live, and shop; and (2)  to improve financial performance by growing revenue and offering  services through alternatives at a lower cost than at post offices.
Because of its dire financial condition, USPS is on our list of high-risk  agencies and programs, and we continue to examine USPS’s  management, operations, and business model to identify actions needed  to make USPS a sustainable enterprise. Citing concerns about its future  financial viability, you asked us to review how USPS is expanding retail  options for customers. This report discusses (1) how USPS’s efforts to  expand access through retail alternatives support its strategic goals of  improving service and financial performance, (2) how USPS  communicates with customers about the availability of its products and  services at retail alternatives, and (3) what actions USPS has taken to  oversee third parties that provide postal products and services.
To address these objectives, we reviewed USPS guidance, performance  reports, and other documents and interviewed USPS officials responsible  for managing and overseeing retail alternatives. In addition, we visited  USPS district offices, post offices, and retail partnership operations in four  USPS districts. We selected districts whose revenue from retail  alternatives, growth in alternative revenue, and percentage of retail  revenue from alternatives were higher than average for fiscal years 2009  and 2010. We interviewed stakeholders representing postal employees  and managers, consumers, and retail partners, and analyzed USPS data  on retail revenue for 2006 through 2010. We assessed the reliability of  USPS’s revenue data and determined that they were sufficiently reliable  for presenting rounded figures of USPS revenue. We also reviewed laws,  regulations, internal control standards, and prior GAO reports. See  appendix I for a more detailed description of our scope and methodology.
We conducted this performance audit from December 2010 to November  2011 in accordance with generally accepted government auditing  standards. 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 objectives. We believe  that the evidence obtained provides a reasonable basis for our findings  and conclusions based on our audit objectives.
subsections: section_title: Background
paragraphs: USPS is required by law to provide prompt, reliable, and efficient services  to patrons in all areas, a standard known as universal service. In  meeting this standard, USPS is required to operate as a self-sufficient,  independent establishment of the executive branch. USPS receives no  annual appropriations for purposes other than revenue forgone on free  and reduced rate mail. USPS generates revenue through the sale of  postage and postal-related products and services.
USPS has acknowledged that its operating costs must be cut, including  by reducing the number of postal-operated retail facilities. Visits to post  offices have decreased, with USPS reporting about 59 million fewer visits  to post offices in 2010 than in 2009 and an overall decline in post office  visits of about 21 percent over the last decade. However, it has been  difficult for USPS to close post offices because of statutory restrictions on  closing small post offices solely for operating at a deficit and resistance  from employees, affected communities, and Members of Congress  concerned about possible effects on service, employees, and  communities. USPS officials have also said that the amount of time it  takes to complete the statutory process for closing its facilities has  hindered USPS from timely realignment of its retail network.
Expanding retail alternatives is part of USPS’s overall strategy to return to  financial solvency while continuing to meet its universal service  requirements. These alternatives have the potential to provide postal  services at a lower cost to USPS than post offices, since USPS does not  staff or maintain retail partners’ facilities, and self-service options reduce  the need for labor and facilities. In 2010, USPS reported that providing  access through certain types of retail alternatives costs less in proportion  to the revenue these alternatives generate, an estimate USPS officials  referred to as cost per revenue dollar. The following retail alternatives are  the focus of USPS’s efforts to expand access.
USPS Web site (usps.com). The Click-N-Ship section of USPS’s Web  site allows a customer to print domestic and international shipping  labels using a computer, and the site’s Postal Store offers stamps and  collectable memorabilia (see fig. 1). Customers may also use the site  to complete other tasks, such as informing USPS of a changed  address or tracking their shipments.
USPS self-service kiosks. USPS owns and operates about 2,500  kiosks, also known as automated postal centers, that allow customers  to buy stamps and mail letters and packages in a self-service  environment. Each kiosk consists of a touch-screen computer with a  scale and is generally located in a post office lobby, with many  allowing for 24-hour customer access (see fig. 2). Customers can   Customers can  make purchases at kiosks using debit or credit cards.  make purchases at kiosks using debit or credit cards.
Contract postal units (CPU). CPUs are the retail alternative most  comparable to post offices. They generally provide a broad range of  retail products and services to customers at USPS prices. Like post  offices, CPUs do not offer competitors’ shipping products and  services. CPUs are operated and managed by independent retailers  that USPS contracts with, providing them with signage and the rights  to use the USPS logo. A CPU may be a stand-alone business or  occupy space within a larger business, such as a counter within a  store (e.g., pharmacy or grocery store) that also sells other products  and services (see fig. 3). According to USPS, there were about 3,600  CPUs as of fiscal year 2010.
Approved Shippers. Approved Shippers are retailers that may offer  shipping services from a range of providers, including USPS. For  example, Approved Shippers we met with offered shipping services  from companies such as FedEx and UPS, as well as local delivery  companies. USPS provides no compensation to the retailers, but  provides its services at discounted commercial rates and puts no  restrictions on additional fees that retailers can charge for USPS  products and services. Vendors that participate in the Approved  Shipper program are provided USPS branding rights and signage.  According to USPS, as of fiscal year 2010, there were about 4,200  Approved Shippers.
Stamp retailers. USPS’s Stamps on Consignment program, managed  by ABnote North America (ABnote), a company specializing in secure  distribution and order fulfillment, makes stamps available at retailers  such as grocery stores and pharmacies and at banks’ automated  teller machines. USPS generally provides no compensation for stamp  retailers, and retailers cannot sell stamps above face value; however,  banks that sell stamps through automated teller machines may charge  customers a fee for this service, and other stores that are not Stamps  on Consignment program participants may also resell stamps and  charge additional fees. According to USPS, as of fiscal year 2010,  there were more than 56,000 Stamps on Consignment locations  selling stamps.
The types of USPS products and services available at post offices  ices available at post offices  compared with those available at retail alternatives are shown in figure 4.  compared with those available at retail alternatives are shown in figure 4.
Retail alternatives are available in urban, suburban, and rural areas,  supplementing USPS’s traditional retail network of post offices, as  illustrated in figure 5.
USPS employees in headquarters and field offices have roles in  implementing retail alternatives. Headquarters officials are responsible for  designing and overseeing the retail alternatives programs, including  setting goals, developing marketing campaigns, managing usps.com, and  developing policies for local officials that oversee kiosks and retail  partners. They also maintain databases on retail revenue and facilities.  Officials in administrative field offices, particularly district offices, and post  offices supervise postmasters and other managers who oversee and  support local implementation of retail alternatives, in addition to their  duties supporting the mail delivery network. These oversight duties  include monitoring and servicing kiosks and training and monitoring retail  partners.
The Government Performance and Results Act of 1993 (GPRA) requires  USPS to establish outcome-related performance goals for its major  functions. GPRA also requires USPS, as it does other federal agencies,  to develop performance indicators for measuring the relevant outcomes of  each program activity to demonstrate how well it is achieving its goals.  We have previously reported that performance data should be complete,  accurate, valid, timely, and easily accessible to be useful. Furthermore,  we have reported on the importance of reliable cost data, noting that it  can help provide accurate comparisons of costs and benefits; inform  budgets and proposals for reorganization; identify potential savings,  efficiencies, and waste; benchmark programs and activities; and measure  program and managers’ performance.
section_title: A Retail Network Plan Could Help USPS Enhance Service and Financial Performance
paragraphs: USPS’s efforts to expand access through retail alternatives are intended  to support its strategic goals of improving service and financial  performance. According to USPS’s 2010 Comprehensive Statement on  Postal Operations, retail alternatives improve service by making postal  products and services available at times and places consistent with  customer preferences, and they improve financial performance by  increasing revenue and providing services at a lower cost than traditional  outlets.
subsections: section_title: USPS Has Expanded Access through Retail Alternatives, but Service Differences May Present Barriers for Some Customers
paragraphs: USPS intends for both types of retail alternatives—self-service and  partnership programs—to make postal products and services more  convenient by expanding the locations and times at which they are  available. For instance, USPS has expanded the number of access points  in the following ways:
Providing customers the option to obtain postal services through its  Web site, usps.com. According to USPS, use of the site has  increased from about 312 million visits in 2006 to more than 413  million visits in 2010, showing that customers are increasingly  accessing postal services online.
Deploying 2,500 self-service kiosks in 2004 to selected post offices, to  provide an alternative to post office windows that enables customers  to conduct most types of common postal transactions.
Partnering with retailers to sell stamps in over 56,000 locations, such  as pharmacies or grocery stores.
Expanding its Approved Shipper program in 2010 to about 4,200  participants, including by offering postal services in about 1,000 Office  Depot stores. According to USPS officials, the number of stores  increased to about 1,100 stores in 2011.
Placing CPUs in rural areas that need service but would not generate  enough revenue to justify the cost of operating post offices in those  locations.
According to USPS, retail alternatives improve service by providing  access to customers not only in more places but also for longer hours.  For example, usps.com is available 24 hours a day, and self-service  kiosks are accessible when post office windows are closed. Additionally,  USPS states that service at busy post offices can also be improved when  kiosks in post office lobbies or CPUs in nearby areas are available to  accommodate customers who could otherwise have long waits in post  office lines. To further improve service through usps.com, USPS is  currently redesigning its Web site with the intention of making it more  useful for customers (see our assessment of USPS’s Web site redesign  in app. II).
Although retail alternatives expand service locations and hours, certain  characteristics of these alternatives could be problematic for some postal  customers. For example, USPS says that usps.com provides postal  products and services “when and where” customers want them, but this  option is only available to postal customers with access to the Internet.  We identified the following characteristics that may affect customers’  ability to access postal service at retail alternatives:  Cost. Postal services available through retail alternatives may be more  costly for customers than at post offices because of added fees or limited  options. For some customers, the convenience certain options offer may  outweigh the added cost, but to more price-sensitive customers, higher  costs could deter the use of some alternatives. Instances in which  alternatives may be more costly include the following:
USPS charges a $1.00 service fee for stamps purchased from  usps.com or over the phone, and banks that sell stamps through  automated teller machines are allowed under their service  agreements to charge customers a service fee.
The usps.com Click-N-Ship site offers Express Mail, which provides  overnight or second-day delivery, and Priority Mail, which provides 1-  to 3-day delivery, but not the less-expensive First-Class, Parcel Plus,  and Media Mail shipping options.
USPS puts no restrictions on added fees Approved Shippers may  charge for the same services available at post offices. Furthermore,  many retailers that resell USPS stamps, including some Approved  Shippers, may charge customers other than face value for them. For  example, during a site visit, we observed an Approved Shipper  charging $11.00 for a book of 20 stamps valued at $8.80.
Access requirements. Self-service options give customers the flexibility of  accessing postal services directly. However, these options have  additional requirements for a customer to be able to use them:
Both usps.com and self-service kiosks require an electronic form of  payment, such as a credit card. This creates a barrier for customers  who do not have access to credit cards, which could  disproportionately affect low-income customers.
Internet access is required to use usps.com, putting customers who  lack access to or do not use the Internet at a disadvantage,  particularly those in remote areas.
Closure and termination procedures. Retail partners, unlike postal- operated facilities, can close without public notice or an opportunity for  public input, creating the potential for unanticipated gaps in service:
CPU contracts are generally valid for an indefinite period, but either  the CPU operator or USPS can terminate a contract at any time, with  or without notice, depending on the circumstances. According to  USPS, the number of CPUs has declined in recent years, from about  5,800 in 2006 to about 3,600 in 2010. USPS officials and  representatives of a national association of CPUs said that the main  reason for the decline in CPUs has been the recent downturn in the  U.S. economy. Furthermore, USPS officials told us they have faced  challenges with expanding the number of CPUs, including resistance  from postal labor and higher costs than implementing other types of  retail alternatives. In order to minimize the potential for closures,   USPS officials told us they assess potential CPU operators to  determine whether their existing business is viable.
USPS or Approved Shippers can terminate an Approved Shipper  agreement with 10 days’ notice to the other party.
ABnote’s agreement with stamp retailers states that either ABnote or  the retailer may terminate the agreement with 30 days written notice  to the other party and that ABnote may terminate it immediately.
USPS is required to provide universal service to customers throughout  the United States, which includes providing access to its retail services.  The Postal Reorganization Act of 1970 mandates that USPS provide  “prompt, reliable, and efficient services to patrons in all areas and shall  render postal service to all communities” as well as “…a maximum  degree of effective and regular postal services to rural areas,  communities, and small towns where post offices are not self- sustaining.” According to USPS, there are a number of dimensions to  providing universal service, encompassing issues such as uniform prices  and affordability, quality of service, access to services and facilities, and  geographic scope—many of which are particularly applicable to providing  retail services. However, USPS has not adopted a specific standard for  universal service and has declined to create one. This makes it difficult  to determine to what extent the differences in cost, access requirements,  and closure procedures previously discussed could affect USPS’s ability  to meet its universal service mandate as it modernizes its retail network to  rely more on retail alternatives and less on post offices. Such ambiguity  will add to the challenge of defining an appropriate level of access under  a modernized network, such as determining the optimal mix of retail  alternatives and post offices USPS needs to effectively serve customers  from varying socioeconomic and population demographics.
Other countries that have modernized their postal retail networks to  include more partner-owned and -operated facilities developed criteria for  providing a minimum level of service to guide their restructuring efforts.  Such standards can include different requirements for serving areas of  higher and lower population density. For example, in our recent report on  foreign posts’ efforts to restructure their networks, we noted that  Australia’s universal service standards require that at least 90 percent of  residences in metropolitan areas be located within 2.5 km (1.56 miles) of  a postal retail outlet and, in nonmetropolitan areas, at least 85 percent of  residences be located within 7.5 km (4.66 miles) of a retail outlet.  Canada and Germany also set standards for determining appropriate  geographic coverage of retail access points. Having criteria for assessing  whether changes to its retail network conform with its requirements to  provide universal service could help USPS determine the most cost- effective placement of retail access points—whether through post offices  or alternatives. Such criteria could change over time to adapt to changing  customer needs. They could also help USPS more clearly articulate how  it intends to achieve its goals and better demonstrate its progress toward  them. Without such measures, it is unclear how well USPS’s efforts to  expand access with retail alternatives are supporting its goal to improve  service as intended.
section_title: USPS Has Increased Revenue from Retail Alternatives, but Has Not Demonstrated Cost Savings
paragraphs: USPS has stated that retail alternatives support its goal to improve  financial performance by generating revenue while offering products and  services through outlets that are less costly than post offices. USPS  officials told us that the increasing proportion of retail revenue from  alternatives is a marker of improved financial performance, even though  retail revenue from all sources—which constitutes about one-fourth of  USPS’s overall revenue—decreased from $19.2 billion in fiscal year 2006  to $17.5 billion in fiscal year 2010. USPS data show that the share of  retail revenue from alternatives grew from about 22 percent in fiscal year  2006 to about 31 percent in fiscal year 2010, representing an increase  from about $4.3 billion to $5.4 billion during this period, while at the same  time, revenue from post office windows decreased from $14.9 billion to  $12.1 billion (see fig. 6). According to USPS, revenue from retail  alternatives in fiscal year 2011 represented 35 percent of overall retail  revenue. USPS has projected that by 2020 alternatives to post offices will  likely account for 60 percent of its retail revenue.  tail revenue.
Although overall postal revenue from alternative sources has grown in  recent years, trends in revenue vary among the types of retail  alternatives. From fiscal years 2006 through 2010, revenue from some  types of retail alternatives has increased:
According to USPS, revenue from usps.com has grown from about  $370 million in fiscal year 2006 to about $640 million in fiscal year  2010.
Revenue from self-service kiosks has also grown, increasing from  about $410 million in fiscal year 2006 to about $580 million in fiscal  year 2010.
Revenue from Approved Shippers, a comparatively small program,  grew from about $12 million in fiscal year 2006 to about $29 million in  fiscal year 2010, according to USPS.
However, revenue from other types of retail partners has decreased:
Revenue from CPUs declined from about $730 million in fiscal year  2007 to about $625 million in fiscal year 2010.
Revenue from stamp retailers declined in fiscal year 2010 to about  $1.1 billion, after having grown from about $1.0 billion in fiscal year  2006 to about $1.2 billion in fiscal year 2009.
According to USPS officials, retail alternatives also contribute to USPS’s  financial performance by providing access to its products and services at  a lower cost than through post offices. In its March 2010 action plan,  USPS presented estimates showing that, for each dollar in sales  generated, costs were higher for post offices than for retail alternatives.  Specifically, using fiscal year 2008 data, USPS contractors estimated that  USPS incurred $0.23 to $0.39 in cost for each dollar in sales at post  offices, while for retail alternatives, USPS estimated its costs per dollar of  revenue ranged from $0.02 to $0.13. In assessing the success of retail  alternatives in providing cost savings, USPS officials repeatedly pointed  to the cost per revenue dollar estimates; however, these estimates do not  represent actual cost savings, and we identified several limitations with  these estimates as a measure of financial performance:
The 2008 cost-per-revenue-dollar estimates are a snapshot of costs  and not a model that projects future costs as inputs or external  conditions change. For example, in estimating the costs of local  oversight of retail partners, USPS assumed that the existing retail and  delivery network would remain intact and did not account for potential  closures or staffing changes in post offices.
The estimates do not take into account how additional retail  alternatives could increase or decrease the per-unit cost of retail  alternatives. For example, as USPS adds more retail alternatives,  such as CPUs or Approved Shipper locations, the cost of providing  additional oversight may be comparatively less, since USPS has  already invested resources necessary for training postmasters or  managers to oversee the initial units. Moreover, the declining demand  for postal products and services could also significantly change the  cost per revenue dollar estimates. If revenue declines, as has been  the case for some retail alternatives, absent reductions in costs, the  cost per revenue dollar would increase.
More recent expenses, such as for redesigning USPS’s Web site or  reviewing the performance of Approved Shippers, were not factored  into the 2008 cost estimates and could conceivably change the  estimates.
Consequently, the 2008 cost-per-revenue-dollar estimates do not provide  a complete picture of cost savings realized or expected from  implementing retail alternatives. According to USPS, the estimates are  being updated with fiscal year 2009 and 2010 data using a similar  methodology and include changes intended to improve their accuracy. As  of October 2011, USPS had not completed this update.
USPS officials said they were unable to provide any details about actual  cost savings resulting from their efforts to expand retail alternatives  because wider adoption of retail alternatives is needed before USPS can  realize cost savings by reducing staff at specific post offices. Officials  responsible for oversight of retail partnerships told us that although they  track the cost of their programs, they have not determined metrics for  identifying cost savings, and need better cost data analysis to make  effective program decisions. Furthermore, USPS officials told us their cost  data systems were designed more for providing information in  determining pricing of postal products than for analyzing costs of specific  program areas. USPS did, however, estimate in 2003 that implementing  self-service kiosks would save an average of $110 million annually in  labor costs from fiscal year 2005 through fiscal year 2009, but USPS has  not assessed whether such cost savings were achieved. USPS officials  in headquarters and field offices told us that they can track changes in  staffing at post offices that can result in cost savings, but cannot  determine whether such changes are the result of customer shifts to retail  alternatives or declines in demand for other reasons.
USPS has stated that it will realize cost savings as it closes redundant  and underutilized post offices in response to decreased demand and  customers shifting to retail alternatives. USPS announced in September  2011, that it will review as many as 15,000 post offices for possible  closure, which it stated could produce annual savings of $1.5 billion as  part of an effort to eliminate $20 billion in annual costs by 2015. As part of  USPS’s review begun in July 2011, USPS said that post offices that could  potentially close are those that have insufficient demand and available  alternative access. Also, in July 2011, USPS launched a new retail  partnership initiative, the Village Post Office, which directly ties retail  alternatives to USPS’s ability to cut costs. USPS described the Village  Post Office as a replacement option for some communities where  underutilized yet costly post offices may close. With Village Post Office,  USPS intends to partner with existing small businesses to provide a  limited array of postal products and services to the local community,  including mail collection boxes, post office boxes, stamps, and flat-rate  shipping and mailing products. USPS launched its first Village Post Office  in the town of Malone, Washington, in the summer of 2011, and USPS  officials said they expect to open several thousand similar outlets by the  summer of 2012. Our past work has shown that replacing postal-owned  and -operated facilities with privately owned and operated facilities is a  strategy some foreign posts, such as those in Australia, Germany,  Finland, and Sweden, have used to restructure their retail networks in  order to contain facility and labor costs. USPS officials we spoke with  recognized, however, that until post office closures actually occur, efforts  to expand retail alternatives will yield no cost savings and in fact could  increase costs, since, although the alternatives are generally less costly,  USPS still incurs start-up, administration, and oversight costs.
section_title: Retail Network Plan Needed to Maximize the Potential of Retail Alternatives
paragraphs: Given USPS’s financial challenges, a clear plan guiding investments in its  retail network is essential, including how it intends to increase access  through retail alternatives while considering cuts to its network of post  offices. USPS has not yet produced a plan outlining how retail  alternatives, as part of USPS’s overall retail network, will improve service  and financial performance. USPS released a plan to Congress in June  2008 outlining changes to its processing, transportation, and retail  networks that included descriptions of alternatives it was pursuing, but did  not include specific goals for expanding access through alternatives or  specific related actions it would take to achieve cost savings. We  reported in February 2011 that USPS officials said they were developing  a retail strategy that would be made public in early 2011. However, as  of October 2011, USPS officials told us they had not prepared a  documented strategy for retail. According to an official responsible for  USPS retail programs, such a plan has not been completed because the  needs of postal customers continue to evolve. Members of Congress  have introduced legislation calling for USPS to develop a plan that  addresses customer access, the closure and consolidation of post offices,  and estimated cost savings attributable to such closures and  consolidations. Furthermore, GPRA identifies how such a plan should  look, what it should include, and how it would help USPS measure  progress toward its goals.
section_title: Effective Public Communication Is Key to Successful Network Restructuring with Retail Alternatives
paragraphs: As USPS continues to make changes to its retail network, an ongoing  focus on public communication will be important to foster customers’  acceptance of retail alternatives. USPS’s Corporate Communications  officials told us that building awareness of retail alternatives among the  public has been a particular challenge. We have previously reported that  agencies need to ensure they adequately communicate with external  stakeholders, such as consumers, whose actions have a significant  impact on an agency achieving its goals. To accomplish this, agencies  develop communication strategies, which can include actions for building  awareness and support for a program. Determining whether such  communication is adequate can include assessing whether the agency’s  message is reaching the intended audience, which is particularly  important when the agency is trying to reach specific populations, such as  those in rural areas or with low incomes. Without feedback from such  groups, the agency cannot know whether its communication strategies  are building the awareness and support needed to achieve its goals.
subsections: section_title: USPS Has Taken Steps to Increase Public Awareness of Retail Alternatives
paragraphs: USPS has included actions to inform the public about retail alternatives in  its retail communications strategies and has recently launched  communications efforts aimed specifically at increasing awareness of  retail alternatives. In developing its public communications, USPS  conducted focus groups to identify messages that would resonate with  customers. USPS’s actions under these strategies include the following:
As previously discussed, in July 2011, USPS launched the Village  Post Office initiative to partner with small businesses to offer a limited  array of postal products and services in areas where USPS may close  underutilized post offices.
In May 2011, USPS launched a communications campaign to  promote the availability of its services at post offices and retail  alternatives. This campaign uses the slogan “we’re everywhere so  you can be anywhere” to communicate the availability of USPS  products and services at locations other than post offices.
Also in May 2011, USPS released an initial version of a new online  tool customers can use to find post offices and retail partners,  including Approved Shippers, which have generally received less  promotion from USPS than other alternatives. USPS planned to  release additional improvements to its online locator as part of the  usps.com redesign.
In 2010, to improve the public’s awareness of USPS services at  multiple retail points, USPS created a set of icons that post offices  and retail partners can display to show specific products and services  available at a particular location (see fig. 7). A full-service post office  would have most or all of these products and services, while retail  partners like CPUs and Approved Shippers, would have fewer, such  as only stamps, mailing, and shipping options.
In May 2011, USPS developed its plan for communicating the redesign of  usps.com. This plan focuses on the benefits customers may expect from  the new features that will be deployed with each of the project’s phases.  The plan called for USPS to use multiple methods to communicate with  external stakeholders, including the public, such as press releases, e-mail  to its business partners, and external publications. Key goals of the plan  were to ensure that the Web site’s current customers were aware of the  launch of the new site and to help them understand the benefits of the  transition and work to build interest among other customers for the new  site.
section_title: Measures of Effectiveness Could Help Strengthen USPS’s Communications Strategy
paragraphs: As previously discussed, some customers may be more likely to obtain  postal services at post offices than through retail alternatives, because of  certain characteristics that may make alternatives problematic for them.  We have previously reported that USPS needs to clearly communicate to  the public how its plans to optimize its retail network will affect customers,  particularly those in rural areas. We continue to believe this is important,  especially in light of the changes that USPS is undertaking to close post  offices and replace some of them with retail partners, a process that  includes consideration of whether sufficient retail alternatives are  available. According to a senior USPS official responsible for  advertising, USPS used to measure changes in public awareness by  conducting surveys before and after major advertising campaigns, but is  no longer doing so. Although financial constraints may preclude USPS  from introducing new customer feedback tools, it could potentially use  existing tools to gauge public awareness of retail alternatives. USPS  currently surveys residential and business customers about their  experiences with USPS products and services, including their views on  the convenience and customer service of post offices. The household  diary study USPS conducts annually to assess customers’ use of the mail  is another such tool. Either of these options could serve as a platform for  obtaining feedback on how aware customers are of retail alternatives and  whether they are meeting customers’ needs.
Feedback about customers’ awareness and use of retail alternatives can  help USPS be sure its message is reaching its intended audience. For  USPS, as for the foreign posts we reviewed recently, having an effective  communications strategy is an important way to mitigate resistance to  modernizing a postal retail network. For example, Sweden’s postal  service, Posten AB, developed a comprehensive public communications  campaign to inform its stakeholders of how it was transforming its retail  network, an effort begun in 2001. This campaign was intended to help  change the perception of “the post as a place” to “the post as a service.”  Posten AB officials told us they made efforts to show customers and other  stakeholders that although retail facilities owned and operated by the post  were closing, the new retail partnerships offered more access points and  made postal products and services more convenient to obtain. Swedish  postal officials told us that the public was initially resistant to the sweeping  changes to the nation’s postal infrastructure, but ultimately accepted  them. As of 2009, Sweden has transformed its retail network to be 88  percent owned and operated by retail partners. According to the officials,  their public communications campaign was central to the post’s  successful transformation of its retail network. Similarly, three of the five  other foreign posts we examined maintained a retail network with a  majority of partner-owned and -operated facilities rather than their own  traditional post offices. That about a third of USPS’s retail revenue now  comes from alternatives to post offices shows the public has started to  accept and use retail alternatives. As previously discussed, USPS  announced this year it is studying several thousand post offices for  potential closure and intends to close up to 15,000 post offices by 2015. If  USPS closes these post offices as planned, it will be increasingly  important for it to effectively encourage widespread adoption of retail  alternatives.
section_title: USPS Takes Steps to Help Ensure Retail Partners Follow Procedures, but Could Improve Oversight
paragraphs: As USPS has expanded its use of retail partners, it has taken steps to  help ensure that such third-party retailers offer products and services in  accordance with its procedures. Specifically, USPS has established  procedures for entering into written agreements with retail partners,  training them, and monitoring their performance.
Contracts and Agreements  USPS contracts and agreements with retail partners establish terms of  service and requirements for providing service:
The standard CPU contract we examined specifies that a CPU must  offer stamps, domestic and international shipping services, and other  special services, such as insurance and confirmation of an item’s  delivery, and that the CPU may not offer competitors’ shipping  products and services.
Approved Shippers sign licensing agreements stating they will comply  with USPS requirements for offering postal products and services and  follow guidelines on displaying USPS-branded signage and  promotional materials.
Stamp retailers sign agreements with USPS’s contractor, ABnote,  stating they agree to offer stamps at a price no higher than face value  and advertise the availability of stamps.
subsections: section_title: Training and Guidance
paragraphs: USPS has procedures for providing initial and ongoing training and  guidance to its retail partners. According to USPS guidance and officials,  USPS provides new CPU operators with initial classroom and on-the-job  training, which covers topics such as customer service, product  knowledge, and equipment use. USPS may provide additional training to  CPUs to cover changes in its products and services. Approved Shippers  do not generally receive in-person training from USPS, but do receive  training materials such as a guide to postal products, and Office Depot  employees receive employer-provided training on USPS services. USPS  provides additional updates to retail partners through its field offices, and  retail partners can call local USPS offices if they have questions. Most  CPU operators we met with during our site visits raised no concerns  about their training; however, operators at two CPUs told us they would  like refresher training. Additionally, one CPU operator in Northern Virginia  told us it would be useful to have more communication from USPS about  the CPU’s performance. Furthermore, according to a national association  of CPUs, some CPUs have had trouble identifying an appropriate point of  contact at USPS because of staffing changes.
section_title: Monitoring
paragraphs: USPS’s guidance for overseeing CPUs states that local USPS officials  are required to monitor the performance of CPUs on a quarterly basis  through on-site reviews of their operations and compliance with policies.  According to USPS officials, similar reviews have also been required of  Approved Shippers since fiscal year 2009; however, we do not know what  these reviews cover since USPS did not provide us guidance for these  reviews that we requested.
As we observed during our site visits, reviews of retail partner sites do not  always occur quarterly as USPS intends. CPU operators in two of the  four districts we visited told us that such reviews were happening either  less frequently than required or not at all. Furthermore, none of the  Approved Shippers we visited told us they had been visited by USPS staff  conducting a quarterly review. Cuts in USPS’s management-level  staffing may contribute to lapses in oversight of retail partners. According  to USPS headquarters officials, no staff in field offices or post offices are  solely responsible for oversight of retail alternatives and personnel with  such responsibility must balance their oversight duties with other  responsibilities. Reductions in USPS staffing have led to the elimination  or consolidation of management roles that provide oversight of retail  partners, such as field managers who oversee USPS retail operations in  several districts. USPS officials in one district told us that, although they  were required to conduct such visits with Approved Shippers, they were  not doing so. According to these officials, the quality of monitoring of retail  partners had suffered because recent USPS staffing cuts had  consolidated administrative duties for responsible post office employees.
We have previously reported that a risk-based approach to oversight can  help agencies effectively target constrained resources to better address  potential problem areas. Such an approach could help USPS identify  which retail partners should be monitored more closely and would give  managers flexibility to conduct reviews more or less frequently as  warranted by available resources and assessments of risks. USPS  already collects data on retailers’ revenue, complaints from customers,  and results of monitoring reviews, which could be suitable for determining  a retailer’s relative level of risk and an appropriate method and frequency  of monitoring. USPS could then make better use of its management  resources, particularly during a time when such resources are being cut  back. Effective monitoring of retail partners is important because it can  identify bad operators whose actions could potentially undermine USPS’s  efforts to encourage the adoption of retail alternatives. Stakeholder  organizations representing USPS postmasters, a major postal union, and  consumers expressed concerns about the potential for retail partners to  be inadequately trained in how they provide postal services, which could  harm USPS’s image, increase the potential for fraud, and frustrate  customers. If retailers offering USPS products and services provide  inadequate service, customers may be unwilling to adopt retail  alternatives for their postal needs, hampering USPS’s efforts to increase  their use. For example, during our site visit to USPS’s Houston district,  officials told us about a CPU that was poorly managed, leading to  customer complaints and decreased revenue. Eventually the CPU  improved after its management was replaced.
section_title: Conclusions
paragraphs: USPS has acknowledged that to improve its financial condition, it needs  to make changes to its operations, including modernizing its retail network  to more cost-effectively serve customers through the use of retail  alternatives. USPS now offers mailing and shipping products through  thousands of retailers and stamps through tens of thousands of locations.  Further network restructuring must occur quickly if USPS is to address its  financial difficulties, and USPS has announced plans to study 15,000 post  offices for potential closure by 2015. Expanding access through retail  alternatives needs to be an integral part of this effort, but USPS has still  not developed a plan to clearly outline its vision for what a modern retail  network will look like, including how retail alternatives will help maximize  cost savings and preserve customer access to a degree sufficient for  meeting USPS’s universal service mandate. A plan could facilitate  realizing the cost savings USPS expects to achieve by expanding retail  alternatives, but its costs could increase if it expands access without  concurrently making cost-saving cuts in its expensive network of 32,000  post offices. Furthermore, effective progress measures and the data to  support such measures would help USPS and key stakeholders  determine whether efforts to expand access are improving its service and  financial performance as intended.
No amount of planning or oversight will ensure the success of providing  postal services through retail alternatives if the public does not use them.  Clear communication about USPS’s plans for providing access to postal  services, even if it creates short-term resistance, will more likely create  long-term acceptance if the public knows why, where, and how it may  access postal services through alternatives, particularly as post offices  close. Although USPS has strategies for communicating with the public  about retail alternatives, it lacks methods of assessing whether its  message is both reaching its intended audience and having the intended  effect. USPS expects that, by 2020, retail alternatives will replace post  offices as the principal means of access for its retail products and  services—an outcome dependent on the public’s growing awareness,  acceptance, and use of the alternatives.
Since USPS expects to continue expanding its use of third-party retailers  to provide postal services, it will need to have the resources necessary for  effective monitoring of those third parties to help ensure they follow USPS  procedures and provide quality service. On the basis of our site visits, we  found that quarterly reviews of such retail partners are not occurring as  required. And because the risk associated with any particular retailer may  vary, a risk-based oversight approach could help USPS direct its  resources toward those retailers that require more oversight. Factors that  inform risk could include volume of sales, incidence of customer  complaints, or prior performance history. As USPS continues to cut its  administrative staffing to address funding shortfalls, efficient use of its  streamlined management resources will be increasingly important.
section_title: Recommendations for Executive Action
paragraphs: We are making the following two recommendations to the Postmaster  General:
To better ensure that USPS’s efforts to expand access through retail  alternatives support its strategic goals to improve its service and  financial performance, the Postmaster General should develop and  implement a plan with a timeline to guide efforts to modernize USPS’s  retail network that addresses both traditional post offices and retail  alternatives. This plan should also include: criteria for ensuring the retail network continues to provide  adequate access for customers as it is restructured; procedures for obtaining reliable retail revenue and cost data to  measure progress and inform future decision making; and a method to assess whether USPS’s communications strategy is  effectively reaching customers, particularly those customers in  areas where post offices may close.
To help ensure CPUs and Approved Shippers provide postal products  and services in accordance with USPS policies, while making efficient  use of its constrained resources, the Postmaster General should  establish procedures to focus monitoring of retail partners on those  determined to be at a greater risk of not complying with its  requirements and procedures.
section_title: Agency Comments
paragraphs: We provided a draft of this report to USPS for review and comment. In  response to our recommendation to develop a plan to guide its retail  network modernization, USPS stated that it is developing a  comprehensive strategic plan to identify efforts and activities across the  organization that align with optimizing the retail network. In response to  our recommendation to establish risk-based procedures for monitoring  retail partners, USPS agreed to review its current monitoring policies and  stated that its review will be incorporated within its strategic planning  efforts. USPS’s full comments are reprinted in appendix III.
We are sending copies of this report to the appropriate congressional  committees, the Postmaster General, and other interested parties. In  addition, the report will be available at no charge on GAO’s Web site at  http://www.gao.gov.
If you or your staffs have any questions on this report, please contact me  at (202) 512-2834 or herrp@gao.gov. Contact points for our Offices of  Congressional Relations and Public Affairs may be found on the last page  of this report. Contact information and key contributors to the report are  listed in appendix IV.
section_title: Appendix I: Objectives, Scope, and Methodology
paragraphs: This report discusses (1) how the U.S. Postal Service’s (USPS) efforts to  expand access through retail alternatives support its strategic goals of  improving service and financial performance, (2) how USPS  communicates with customers about the availability of its products and  services at retail alternatives, and (3) what actions USPS has taken to  oversee third parties that provide postal products and services.
To obtain information for all of our objectives, we reviewed USPS  documents and interviewed USPS officials responsible for implementing  efforts to expand retail alternatives. We reviewed internal control  standards and our prior reports to identify appropriate criteria for  assessing aspects of how USPS manages its efforts to provide access  through retail alternatives. We also visited four USPS districts to see how  retail alternatives are being implemented at the local level. Specifically,  we visited USPS district offices, post offices, contract postal units (CPU),  and Approved Shippers in Detroit Lakes and Richwood, Minnesota, and  Fargo, North Dakota (Dakotas District); Conroe and Katy, Texas (Houston  District); Arlington and Winchester, Virginia (Northern Virginia District);  and Miami and Stuart, Florida (South Florida District). We selected the  Dakotas, Houston, and South Florida districts because for fiscal years  2009 and 2010 their revenue from retail alternatives, growth in alternative  revenue, and percentage of retail revenue from alternatives were higher  than average. We chose the specific locations we visited to include a  more urban and a moral rural location in each district based on 2000  census data; locations where there were generally CPUs, Approved  Shippers, and self-service kiosks present; and locations with higher than  average revenue. We also interviewed USPS partners, contractors, and  representatives of key groups of affected by USPS retail efforts to obtain  their views on USPS’s efforts to provide access through retail alternatives  (see table 1). We identified these stakeholders through reviews of USPS  regulatory proceedings and prior GAO and USPS Inspector General  reports and recommendations from other stakeholders and experts.
To determine how USPS’s efforts to expand retail access support its  strategic goals of improving service and financial performance, we  reviewed USPS’s strategic planning documents to identify how efforts to  expand retail alternatives are linked to its strategic goals and what the  related performance measures are. We also reviewed USPS’s  requirements under the Government Performance and Results Act of  1993 and prior GAO reports on strategic planning to achieve agency  goals. We identified differences in services provided through retail  alternatives and post offices using information obtained from USPS  officials, site visits, and our examination of usps.com. To assess USPS’s  plans to redesign its retail Web site, we reviewed literature on best  practices for retail Web site design.
We analyzed available USPS data on revenue from retail alternatives for  fiscal years 2006 through 2010 to identify trends and permit comparisons  with revenue from post offices. USPS data on revenue from retail  alternatives comes from various USPS sources that maintain the data in  different ways and are therefore not comparable. Specifically, the data we  provide about overall retail revenue, as well as revenue from post offices  and retail alternatives in general, come from USPS’s audited accounting  database, which contains revenue data that have been adjusted to  account for factors such as customer returns, lost inventory, and how  USPS counts revenue for stamps sold but not yet used. Because of  these adjustments, USPS officials said this data source is more accurate  for reporting overall retail revenue. In contrast, data on revenue from  specific alternatives comes from a variety of USPS data sources,  including databases of gross sales data that have not been reconciled in  the same manner as the accounting database. Neither source could  provide revenue data both overall and for specific retail alternatives, since  the accounting database does not break out revenue for all of the types of  alternatives we examined, and the sales database does not include  revenue from post offices and CPUs that do not report revenue through  an electronic point-of-sale transaction system. Furthermore, there is some  overlap in the revenue data from specific retail alternatives. This occurs  because some retail partners obtain the stamps they sell from USPS’s  Stamps on Consignment program, which is counted as revenue under  that program, and then the partners report all postal sales, including  stamp sales, to USPS, thus creating the potential to double-count some  revenue when using the gross sales data.
Further affecting our ability to complete planned analyses were  substantial delays in receiving responses to our requests for data from  USPS. For example, delays of several months precluded planned  analyses of trends in the number of specific types of alternative retail  outlets in different geographic areas, differences in the types of products  and services sold through different retail outlets, and trends in revenue for  the specific locations and districts we visited. According to USPS officials,  major staff restructuring that occurred while we were conducting our audit  made it difficult for USPS to respond in a timely manner. Consequently,  we scaled back our data analysis to focus on trends in revenue and the  number of locations for retail outlets overall and for the specific types of  retail alternatives that were the focus of our review.
We assessed the reliability of each of the data sources we used by  interviewing USPS officials responsible for them or sending USPS  questionnaires to obtain written answers about its procedures for  maintaining the data and verifying their accuracy. After reviewing this  information, we determined that the revenue data for post offices,  usps.com, self-service kiosks, CPUs, Approved Shippers, stamp retailers,  retail alternatives in general, and retail services overall were sufficiently  reliable for presenting rounded figures of USPS revenue.
Additionally, we obtained data from USPS officials about the number of  outlets for each type of retail alternative. Although we did not verify the  accuracy of these data, we believe they are sufficiently reliable to provide  context for the relative number of alternative outlets offering access to  USPS products and services. We reviewed USPS’s estimates of the cost  per revenue dollar earned from retail alternatives and discussed the  methodology used for the estimates with USPS officials. We compared  those estimates to estimates of post office costs prepared by USPS  contractors, although we did not review the post office estimates in depth  because it was beyond the scope of this review.
To determine how USPS communicates with customers about the  availability of its products and services at retail alternatives, we reviewed  USPS documents such as communications strategies and presentations  and interviewed USPS officials responsible for developing and  implementing public communications and advertising strategies for retail  alternatives. We also reviewed USPS public communications, such as  press releases, reports, and other information on the USPS Web site. We  reviewed our prior reports on effective public communication by  government agencies.
To determine what actions USPS has taken to oversee third parties that  provide access to postal products and services, in addition to the site  visits previously discussed, we reviewed USPS documents and  interviewed USPS officials in headquarters and at the local level to  determine how USPS recruits, contracts with, trains, and monitors retail  partners.
In examining USPS’s efforts to expand access through retail alternatives,  we focused on specific aspects of management related to program goals  and measures, use of data for decision making, guidance and training,  risk assessment and monitoring, and public communication. We did not  assess other aspects of management, such as project planning or  management of financial systems.
We conducted this performance audit from December 2010 to November  2011 in accordance with generally accepted government auditing  standards. 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 objectives. We believe  that the evidence obtained provides a reasonable basis for our findings  and conclusions based on our audit objectives.
section_title: Appendix II: Redesign of usps.com
paragraphs: Created in 1994 as an information site, usps.com was later expanded to  include retail components that today offer access to online shipping  services and postal products, including stamps. Beginning in 2009, USPS  began an overhaul of its Web site to improve its infrastructure and  customer interface with an overall goal of improving customers’  experience with the site. The first phase of the redesigned site was  released in July 2011, and according to USPS planning documents, other  new functions are expected to be released through early 2012. Because  the redesign was still ongoing during our audit work, we were unable to  evaluate the new Web site, but examined whether the intended  functionality of the site is consistent with industry best practices for retail  Web sites.
Planned improvements to usps.com generally align with industry best  practices for better serving customers, as shown in literature on retail  Web site design. Table 2 outlines how USPS’s plans for the Web site  redesign correspond to industry best practices.
section_title: Appendix III: Comments from the United States Postal Service
section_title: Appendix IV: GAO Contact and Staff Acknowledgments
subsections: section_title: GAO Contact
section_title: Staff Acknowledgments
paragraphs: In addition to the individual named above, Heather Halliwell, Assistant  Director; Jameal Addison; Leia Dickerson; Patrick Dudley; Bess  Eisenstadt; Andrew Huddleston; Sara Ann Moessbauer; Josh Ormond;  Friendly Vang-Johnson; and Crystal Wesco made key contributions to  this report.
section_title: Related GAO Products
paragraphs: U.S. Postal Service: Mail Trends Highlight Need to Fundamentally  Change Business Model. GAO-12-159SP. Washington, D.C.: October 14,  2011.
U.S. Postal Service: Actions Needed to Stave off Financial Insolvency.  GAO-11-926T. Washington, D.C.: September 6, 2011.
U.S. Postal Service: Dire Financial Outlook and Changing Mail Use  Require Network Restructuring. GAO-11-759T. Washington, D.C.: June  15, 2011.
U.S. Postal Service: Foreign Posts’ Strategies Could Inform U.S. Postal  Service’s Efforts to Modernize. GAO-11-282. Washington, D.C.: February  16, 2011.
U.S. Postal Service: Strategies and Options to Facilitate Progress toward  Financial Viability. GAO-10-455. Washington, D.C.: April 12, 2010.
U.S. Postal Service: Financial Crisis Demands Aggressive Action.  GAO-10-538T. Washington, D.C.: March 18, 2010.
U.S. Postal Service: Financial Challenges Continue, with Relatively  Limited Results from Recent Revenue-Generation Efforts. GAO-10-191T.  Washington, D.C.: November 5, 2009.
U.S. Postal Service: Restructuring Urgently Needed to Achieve Financial  Viability. GAO-09-958T. Washington, D.C.: August 6, 2009.
U.S. Postal Service: Broad Restructuring Needed to Address  Deteriorating Finances. GAO-09-790T. Washington, D.C.: July 30, 2009.
High-Risk Series: Restructuring the U.S. Postal Service to Achieve  Sustainable Financial Viability. GAO-09-937SP. Washington, D.C.: July  28, 2009.
U.S. Postal Service: Network Rightsizing Needed to Help Keep USPS  Financially Viable. GAO-09-674T. Washington, D.C.: May 20, 2009.
U.S. Postal Service: Escalating Financial Problems Require Major Cost  Reductions to Limit Losses. GAO-09-475T. Washington, D.C.: March 25,  2009.
U.S. Postal Service: Deteriorating Postal Finances Require Aggressive  Actions to Reduce Costs. GAO-09-332T. Washington, D.C.: January 28,  2009.
U.S. Postal Service: USPS Has Taken Steps to Strengthen Network  Realignment Planning and Accountability and Improve Communication.  GAO-08-1022T. Washington, D.C.: July 24, 2008.
U.S. Postal Service: USPS Needs to Clearly Communicate How Postal  Services May Be Affected by Its Retail Optimization Plans. GAO-04-803.  Washington, D.C.: July 13, 2004.