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. 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. 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.