The U.S. Postal Service presently manages billions in contracts, ranging from multi-million dollar national contracts for services such as transportation networks and IT infrastructures, to local contracts for supplies and services at individual postal facilities. The sheer volume of contracts and the huge dollar value provide opportunities for contractors and employees to defraud the Postal Service. The U.S Postal Service Office of Inspector General (OIG) aids the Postal Service by investigating allegations of contract fraud, waste, and misconduct. When contract improprieties are documented, Special Agents present the evidence for criminal and civil prosecution and administrative remedies. Contract fraud is defined as any intentional, unlawful deception designed to deprive the federal government of something of value or to secure from the United States for individuals a benefit, privilege, allowance, or consideration to which they are not entitled.
During this reporting period, October 1, 2010 through September 30, 2011, we conducted 137 contract fraud investigations, resulting in 21 arrests and nearly $729 million in monetary benefit to the U.S. Postal Service.