The Global Business Systems International (GBS) Dispatch is a web-based application used for dispatching domestic and military mail to international destinations by the U.S. Postal Service. Employees use this application to build outbound international receptacles and containers, and then assign transportation to these receptacles and containers.

There is an interface within GBS Dispatch, called Surface Air Management System (SAMS), which determines transportation capacity and assigns it to the outbound mail. Recently, Office of Inspector General auditors examined the controls over the GBS Dispatch and found they were adequate; but, SAMS does not always prevent international mail from exceeding air carrier capacities. Therefore, over tendered mail is returned to the international service centers and redispatched. Overtendering of mail occurs when mail is assigned to an air route that exceeds the capacity of the air route or the maximum weights allowed by the air route contract. Auditors also determined that the GBS Dispatch does not detect destination country discrepancies between mailpieces scanned into the Point-of-Service ONE® system, the primary system the Postal Service uses to conduct retail sales transactions.

When briefed with the findings, the Postal Service stated the agency was aware of these issues and had scheduled or implemented corrective measures. To read this report in its entirety,Click here

In the audit report “Contracting Opportunities and Impact of the Service Contract Act – Report Number CA-AR-12-001” the Office of Inspector General (OIG) examined the U.S. Postal Service’s market research to determine whether the agency could save money if Congress exempted them from McNamara-O’Hara Service Contract Act (SCA) compliance. The SCA, enacted in 1965, applies to every contract entered into by the United States or the District of Columbia. It contractors and subcontractors performing on such Federal contracts to observe minimum wage and safety and health standards, and must maintain certain records, unless a specific exemption applies.

Although it is not funded by taxpayer dollars, the U.S. Postal Service is required by Title 39 of the U.S.C. to pay the SCA rate for service contracts.

The OIG found the Postal Service could save money if it did not have to adhere to the SCA – an act that impacted 80 percent of Postal Service’s costs. Further, the OIG estimated the Postal Service could save approximately $675 million annually if it outsourced cleaning/janitorial and postal vehicle service driver positions at competitive market rates. The Postal Service, however, could face challenges to outsourcing these positions: for example, labor union agreements, concerns that new unions will be formed, workforce retention issues, market or economic fluctuations, and the potential for congressional constituency concerns.

Click here to read the report in its entirety.

OIG Releases Semiannual Report to Congress . . . As the foundation of a $1 trillion mailing industry with more than $66 billion of its own in annual revenues, more retail outlets than three of the most ubiquitous companies combined, and 557,000 employees, the U.S. Postal Service makes for a compelling story. When the fate of this national infrastructure is threatened by record losses, burdensome federal benefits payments, and in need of an updated business model, the story is undeniably significant. The Office of Inspector General’s just-released Semiannual Report to Congress (SARC) tells this story, focusing on the challenges facing the Postal Service, the possible solutions, and its opportunities for success. Pulling from its ongoing work, the OIG report considers ways the Postal Service could make the necessary improvements to remain a valuable communications infrastructure, in particular around financial management, optimization, simplification, and innovation. The report also cites opportunities for the Postal Service to gain traction in a fast-changing digital market.

The SARC also highlights audits and reviews that address risks in the strategic, financial, and operational areas of the Postal Service. It includes investigations conducted during this reporting period that contributed to safeguarding the Postal Service’s revenues and assets and helped deter postal crimes. This SARC outlines the OIG’s work and activities for the 6-month period from April 1 to September 30, 2011. Auditors issued 199 audit reports and management advisories, with the Postal Service accepting 90 percent of the OIG’s significant recommendations. The report highlights the OIG’s dedication to integrity, accountability, and transparency, which means that no person in the organization is above the law or immune from the ethical standards set by the Postal Service. In this period, the OIG conducted 2,129 investigations that led to 333 arrests and nearly $21 million in fines, restitutions, and recoveries, of which about $11 million went to the Postal Service.

Click here to view the report in its entirety.