on Jun 1st, 2010
in Strategy & Public Policy
| 5 comments
In a time when everyone is examining the dollars and cents of the postal business, people have a tendency to overlook the bigger picture: the greater role of the Postal Service in modern society. With that in mind, the Postal Regulatory Commission requested the Urban Institute to study the Postal Service. The focus was not a traditional look at the business but a study of the benefits of the Postal Service and its infrastructure to the American population. The abstract and the final report, both of which were released last week, cites “…the postal system has had a civic as well as an economic mandate that legislators and regulators interpret with changing times and circumstances in mind. An independent agency of the executive branch, the USPS opens access to information for preserving democracy, fostering commerce, and promoting the general welfare. It’s a public good and a great equalizer insofar as it serves rich and poor, urban and rural, young and old, unhealthy and hale.” The report’s author, Nancy Pindus, found eight types of benefits: •Consumer benefits – Provides price competition for other delivery services and access to goods for the underserved. •Business benefits - Provides a logistical component for smaller businesses, an advertising channel serving a spectrum of businesses, and as a center of commerce in communities (through post offices). •Safety and security - Offers mail carriers’ role within the neighborhood and places the Postal Service in a position to assist in emergencies or in cases of natural disaster. •Environmental benefits – Acts as a test site in exploring environmental products and services; provides last-mile service to other delivery companies and utilizes post offices as centers for recycling efforts in many communities. •Aid in the delivery of other government services – Functions as an intermediary for government services on local, state, and Federal levels. •Information exchange – Holds a traditional role of democratically disseminating information, whether through periodicals, community groups or other channels. Post offices also serve as center for posting of community notices. •Social links – Delivers personal communications, carriers provide a regular link to the community for a number or people, post offices are a center for local contact and identity. •Civic pride – Serves as the only representative of Federal government in many areas, often tied into an area’s community identity. In your opinion, have any roles been overlooked? Should any of these roles be eliminated and if so, why? This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).
on Mar 22nd, 2010
in Post Offices & Retail Network
| 16 comments
As the Postal Service examines its business model and contemplates changes meant to increase its efficiency, Congress’s role in postal operations has captured public attention. A prime example is the Postal Service’s recent efforts to trim its retail operations. As a cost cutting initiative, on July 2, 2009, the Postal Service filed with the Postal Regulatory Commission a list of Post Office stations and branches it was considering closing. After the filing, many entities questioned the Postal Service’s authority to close these facilities. An article published on the U.S. News & World Report website states, “Call your local congressman if you don’t want your local Post Office retail station or branch to be closed.” In addition, the American Postal Workers Union (APWU) announced on its website “the APWU continues to lead community-based drives to keep retail units open.” Clearly, identifying the exact number and location of closings supercharges emotions. Add very real issues like social customs and potential job losses and relocations to the mix, and there are even more negative feelings associated with Post Office closures. It is not clear yet the number of retail stations and branches that will be closed, but what started out as list of 3,200 candidates has now declined to fewer than 170. In the action plan the Postmaster General announced in March, he cited a number of issues that will require legislative approval, including the retail network. The question is whether Congress, given constituent and political pressure, can provide the Postal Service the level of autonomy necessary to address this issue. How do you think Congressional oversight affects Postal Service operations? This topic is hosted by the OIG’s Office of Audit Network Optimization team.
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