A Contract Postal Unit (CPU) is a retail postal facility located inside a retail establishment, such as supermarkets, card and gift shops, pharmacies, and colleges. CPUs are operated by the retailer's employees and offer the same basic services available at a regular Post Office. The Village Post Office (VPO) concept was introduced earlier this year and is similar to the CPU in that they are retail postal facilities operated by community businesses. However, they provide limited postal products and services. CPUs and VPOs lower U.S. Postal Service expenses, primarily because they use already existing retail stores. The Postal Service does not have to rent its own store and hire dedicated staff.

In fiscal year (FY) 2010, CPUs accounted for 8 percent of the Postal Service’s total retail network. In comparison, Canada has private dealer – operated outlets, which are similar to CPUs and account for more than 39 percent of Canada Posts® retail outlets; Australia has Licensed Post Offices and Community Postal Agencies, which are also similar to CPUs and account for 81 percent of Australia Posts® retail network.
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Expanding the use of CPUs and VPOs could assist the Postal Service in reducing its physical footprint, lowering expenses, providing more outlets for products and services, and potentially increasing access hours.
What do you think? Would a system of CPU and VPOs better serve the current market? Do you have any concerns with the concept?

Please share your thoughts and ideas.

This topic is hosted by the OIG’s Financial Control Directorate.

Comments (52)

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  • anon

    Are these contract postal units considered Federal property? Does 39 CFR 232.1 apply to them? If so, to what degree? The entire business, or only the portion being contracted by the USPS?

    Jul 05, 2016
  • anon

    Wonderful.

    May 27, 2016
  • anon

    Very good idea you've shared here, from here I can be a very valuable new experience. all things that are here will I make the source of reference, thank you friends.

    May 18, 2016
  • anon

    The CPU that was in our neighborhood was closed due to closure of the business location. When I tried to apply to take over as a CPU, I was told that I was not qualified because my location is a The UPS Store franchise and I sell non-postal shipping services and rent private mailboxes. That is ludicrous! Right now we are an Approved Postal Provider and a CMRA. We have the facilities, staff, and expertise to pick up the load from the closed CPU. Our staff is already trained, we are already set up to provide all postal services except Money Orders and Registered mail. We currently offer those services at a higher price than the USPS retail price because we pay retail or commercial base prices on all those products and need a profit to stay in business. Making us a CPU has multiple benefits; no construction costs because we are already setup, no software costs, no training costs (or at worst minimal training costs) because we are already trained, and we would be able to offer all Postal Products at USPS advertised retail pricing because we'd receive compensation under the CPU agreement. Disqualifying us from bidding on this CPU simply because we are a CMRA and ship via multiple carriers is just another attempt by the USPS to eliminate their competition by regulation. As a CPU we would provide more services than the previous CPU, better customer service than either the CPU or the main PO, and save the Postal Service money in the long term. <a href="www.bacaaku.com"/rel="nofollow">BacaAku</a> <a href="www.bisnis.bacaaku.com"/rel="nofollow">Baca Bisnis</a> <a href="www.blogging.bacaaku.com"/rel="nofollow">Baca Blogging</a> <a href="www.youngstyle.bacaaku.com"/rel="nofollow">Baca Style</a> <a href="www.teknologi.bacaaku.com"/rel="nofollow">Baca Teknologi</a>

    Apr 21, 2016
  • anon

    I think we should leave this to experts who know about running a post office. Asking the general public their opinion is completely asinine. As you can see by the unqualified comments left here. I would rather hear the opinion of the post master general.

    Mar 29, 2016
  • anon

    The CPU that was in our neighborhood was closed due to closure of the business location. When I tried to apply to take over as a CPU, I was told that I was not qualified because my location is a The UPS Store franchise and I sell non-postal shipping services and rent private mailboxes. That is ludicrous! Right now we are an Approved Postal Provider and a CMRA. We have the facilities, staff, and expertise to pick up the load from the closed CPU. Our staff is already trained, we are already set up to provide all postal services except Money Orders and Registered mail. We currently offer those services at a higher price than the USPS retail price because we pay retail or commercial base prices on all those products and need a profit to stay in business. Making us a CPU has multiple benefits; no construction costs because we are already setup, no software costs, no training costs (or at worst minimal training costs) because we are already trained, and we would be able to offer all Postal Products at USPS advertised retail pricing because we'd receive compensation under the CPU agreement. Disqualifying us from bidding on this CPU simply because we are a CMRA and ship via multiple carriers is just another attempt by the USPS to eliminate their competition by regulation. As a CPU we would provide more services than the previous CPU, better customer service than either the CPU or the main PO, and save the Postal Service money in the long term.

    Mar 24, 2016
  • anon

    Good idea to increase services and decrease expenses

    Mar 02, 2016
  • anon

    I actually think the USPS guys are pretty well-trained, but, as for me, there is big problem with the priority.

    Jan 13, 2016
  • anon

    Post offices must be re-created to better the life of the people

    Jan 05, 2016
  • anon

    Great!

    Nov 26, 2015
  • anon

    My dak missing sir help me

    Oct 28, 2015
  • anon

    I think we should leave this to experts who know about running a post office. Asking the general public their opinion is completely asinine. As you can see by the unqualified comments left here. I would rather hear the opinion of the post master general.

    Oct 19, 2015
  • anon

    The problem I am seeing with the VPO's in my area is this. There are no dedicated drivers to pick up the priority, express and other mail to meet the postal trucks in the evening. When I purchase services at a VPO at 8 AM I am already told the mail has been picked up for the day delaying my package by one to two days depending on whether the carrier gets the mail to the office and accepted scans in time to meet the evening trucks. So I am paying for a service that I am not receiving. I can see where the Postal Service wants to save money. However, the Postal Service needs to service these facilities so their customers are getting the same service as if they went to a regular Post Office. The postal service is not showing the priority mail and express mail failures, because the acceptance scan is not made until the carrier gets back to the post office that day and depending on the time he/she gets back he/she either scans with the same days date or dates the acceptance for the next day. This is unacceptable.

    May 13, 2015
  • anon

    Could you send me specific information on How to become a Contract Postal Unit? Thanks

    Jan 27, 2015
  • anon

    Hello Paula, The primary responsibility of the U.S. Postal Service Office of Inspector General is to prevent, detect, and report fraud, waste and misconduct; and to conduct independent audits and investigations of Postal Service programs and operations to ensure their efficiency and integrity. The issues raised in your correspondence do not fall within the jurisdiction of this office. However, if you use the contact information below detailing your request, they should be able to assist you: United States Postal Service Consumer & Contact Industry Office (800) ASK-USPS or (800-275-8777)

    Jan 28, 2015
  • anon

    The Village Post Office was the “concept” unveiled last summer along ... As a USPS OIG report entitled “High-Risk Contract Postal Units” ... In any case, it doesn't look like CPUs or VPOs are going to be the wave of the future. http://services-france.fr/

    Nov 08, 2014
  • anon

    When the contract station employees and the village post office employees receive extensive retail training and are held accountable - then and only then will the service be as good as at your local post office. (this also should apply to PMR's - the extensive training)

    Oct 06, 2014
  • anon

    I agree with the opinion of my friend Linda, If there is a training for service to the customer it would be perfect and will make the customer satisfied. So all the business can run properly

    Sep 01, 2014
  • anon

    Great ides...it will easy and time saving process...and also money making idea. <a href="http://www.affordable-seoservices.com/">Regards</a>

    Aug 26, 2014
  • anon

    Post offices need to modernize to better serve the people!

    Aug 21, 2014
  • anon

    "I take issue with the whole "train your urban employees" nonsense. The simple fact is that employees often get treated like crap by customers, when an air of calmness would resolve any situation. Postal workers are under a lot of stress. In any case, I favor traditional offices, but CPUs serve a purpose for quick, non-intensive trips" You´re are so right. I don´t get it either...

    Jul 14, 2014
  • anon

    If there is a training for service to the customer it would be perfect and will make the customer satisfied. So all the business can run properly thanks for share

    Jun 26, 2014
  • anon

    I tried to mail an envelope at a new VPO that opened near my home and was disappointed. The worker said there was no stamp on the envelope and he did not have a scale in the room to weigh the envelope and if it needed one or two stamps. The envelope had a letter and a pin inside. The weight could be one or two ounces, and the envelope may be a bit over 1/4 inch thick. I expected the worker to know the rules that apply to first class mail. I expect businesses that do services that involve costs based on weights to have scales readily available.

    Jun 23, 2014
  • anon

    I would just like to let everyone here know that I have worked at a cpu unit for the past 4 yrs. We are bound by the federal government to serve customers and we also provide all the services the post office offers. The one thing our customers complain about is we don't have a debit machine. The post office will not provide us with one and in return they won't pay the sercharge fees for the sales of postal products. With that said the contract amount could not cover employment, business and the postal fees. We also get alot of complaints that the customers don't like going to the official post office because they get treated like crap. Because the postal workers have the union be hind them knowing they will always have a job so they treat people however they want. The real kicker to all of this is our own post master treats people like they are a piece of trash on the bottom of her shoe. The reality to all of this is a cpu unit treats the customers like family and the post office saves money with these units because they pay one amount (which has been the same amount for over 14 yrs) and the employees get regular pay (just like if your working for mcdonalds) no benefits and we do every job not just the one that is our job title. The post office is having problems because they over pay those that should actually be fired because they are a bad egg, but the union fights to keep their jobs. Those of you that don't know how the union works in a bad way is, for example: you have mary (job title clerk) and bob (job title clerk) and mary has the day off, and bob gets busy and a mail carrier steps in to help bob out, and mary finds out about the carrier helping bob when he was busy, she can file a grievance with the union and so can any boohoo or yahoo with the clerk job title and they will all get paid for the full day even if the mail carrier only helped out for 10 minutes. There are way to many people that would love to have a postal job and be paid for what they actually do, what ever happened to team work. I can tell you away to save the post office, 1st fire all the bad eggs, this 10 yr I get to keep my job is down right bull crap. I was raised that your integrity speaks for itself and you should be rewarded for your job performance and if your job performance sucks you should be able to be fired. This is how it works for non federal employees it should work like that for all. I agree with a union if it works for you for the right reasons not fight for you to get paid for doing nothing and also keep bad people or job performers there jobs. Just because you become post master doesn't mean your god, you should be held at a higher standard and not think your job title gives you the right to treat people in an ugly manner. GOD DON'T LIKE UGLY and you will have to pay some day.

    Jun 13, 2014
  • anon

    Who knows what will happen next with the Post Office...I'm confident that what ever happens the post will still always be around to deliver our mail.

    Apr 09, 2014
  • anon

    I take issue with the whole "train your urban employees" nonsense. The simple fact is that employees often get treated like crap by customers, when an air of calmness would resolve any situation. Postal workers are under a lot of stress. In any case, I favor traditional offices, but CPUs serve a purpose for quick, non-intensive trips

    Jan 21, 2014
  • anon

    You mention that Australia has community postal agencies and that's true as I live about 200 yards from one. Just a couple of points though: For the last week they haven't had any stamps for overseas postage. Also when I went into the main post office about 2 miles away and mentioned that my local community agency had advised me something on international post they contradicted that advice and said that "they're not a real post office". The community post office does have very good opening hours though and is suitable for what I need 9 times out of 10. On balance - I'm for them.

    Jan 07, 2014
  • anon

    Canada is already moving into that direction. It is the future, the funds invested into community mailboxes if sure to pay off . It is a way to hedge into an uncertain future as well. You should go ahead with it.

    Jan 06, 2014
  • anon

    Yes its less pain and struggle when postal offices is on malls. The ambiance is different for sure, good even you bring kids around.

    Dec 06, 2013
  • anon

    If the USPS elimated the Union they could survive. Bad enough with the Government rules but then the post office has to deal with the the unreasionable &amp; irresponsible demands of the Union Bosses that milk the employees of their hard earned pay. At least give the postal worker the freedom to choose &amp; not be mandated to join a union against their will. If most workers were given that freedom - unions would fade away.

    Feb 06, 2013
  • anon

    The current drive to privatize the Post office with HR2309 will drive service and workers wages and benefits down. Two contract stations that I know about simply didn't work out so to view contract stations as a cost saving measure to replace Post Offices may not save as much money as the Post Office contemplates.

    Sep 24, 2012
  • anon

    Where is the sanctitity and the security of the mail with the VPO? And what about the strict FAA regulations so we can fly priority parcels by commercial airline? What about the strict scanning scores for all parcels the USPS reminds its employees that they shouldn't miss a scan? Apparently those are all old-hat and out the window. Will the part-time store employee running the VPO really care about all these? I DON'T THINK SO! And what about the new type of clerk employee that is being hired now--the PSE? A two-year stint maximum at a reduced rate from what a regular clerk earns, but with a few benefits. How serious do you think someone is going to be about a job they know is only going to last two years at the most, anyway? And what about the "ethics" of today's workers--they want to work when they want to work and make no qualms about telling you they're "not available on Saturdays", or that they need "flexibility". Today's new breed of workers can't even begin to compare to the old-timers who stand behind the window of the local post office. How serious do you think these part-timers or people running the VPO will be about the rules in the Domestic Mail Manual and about the strict rules about mailing overseas, and the restrictions for what can and what cannot be mailed? Do you think they will really care? Hire all the part-timers you want--that should REALLY screw things up for the USPS--and drive what's left of the business into the hands of private enterprise. I think that's the whole idea behind this anyway--privatize! It's all about greed. The USPS is about TRUST. Postal employees take a serious oath to protect the mails, and postmasters in very small post offices are a very special breed of person--someone who is ultimately discreet, who can meet the needs of ALL their customers, who understands every customer individually, and who can relate to each one on their own level. Part of the problem stems from the misconception that people making decisions about small post offices don't understand what the postmaster in the small post office actually does--cleans the toilet, washes the windows, vacuums, shovels the snow, etc. Management believes all they do is sell stamps. Even some customers think that's all the person behind the window does--sell stamps, because that is all they see. But there is much more to operating a small post office. Much more than selling some generic stamps or generic pre-paid Priority envelopes or packaging.

    Jun 03, 2012
  • anon

    This is very similar to the requirements now from the feds for EPA Lead Certification! It is so weird they have decided to do this now too...

    Feb 28, 2012
  • anon

    Considering the USPS operates at a huge loss every quarter, I think it would be a good idea to close more post offices and switch to CPU's or VPO's where appropriate.

    Feb 17, 2012
  • anon
    growshop

    I actually think the USPS guys and gals are pretty well-trained; insofar as their interactions with customers. Where the problem lies seems to be the interaction they have amongst themselves. The workplace environment doesn’t always seem amenable to amicability.

    Feb 14, 2012
  • anon
    hobbycontrol

    I agree with the opinion of my friend Linda, If there is a training for service to the customer it would be perfect and will make the customer satisfied. So all the business can run properly

    Feb 14, 2012
  • anon
    memorymakers.com.pl

    I also think it’s a great idea that the CPUs are in the malls. makes things easier

    Feb 08, 2012
  • anon

    Where people are working they need a proper training! Thanks.

    Jan 28, 2012
  • anon

    I take issue with the whole "train your urban employees" nonsense. The simple fact is that employees often get treated like crap by customers, when an air of calmness would resolve any situation. Postal workers are under a lot of stress. In any case, I favor traditional offices, but CPUs serve a purpose for quick, non-intensive trips

    Jan 06, 2012
  • anon

    I actually think the USPS guys and gals are pretty well-trained; insofar as their interactions with customers. Where the problem lies seems to be the interaction they have amongst themselves. The workplace environment doesn't always seem amenable to amicability.

    Jan 06, 2012
  • anon

    I agree with the opinion of my friend Linda, If there is a training for service to the customer it would be perfect and will make the customer satisfied. So all the business can run properly

    Dec 26, 2011
  • anon

    What USPS needs is better customer service at its existing locations, particularly in urban communities. What customers need are trained USPS I think so.</a> professionals to help them with the wide variety of services that USPS offers, and is obligated to fully offer, each community.

    Dec 08, 2011
  • anon

    Open more "Goin Postal" Franchises or similar. Less government, more entrepreneurship business's. Less entitlements, more independence, less bureaucracy, more commerce. Create more competition, and initiative so the qualified and or experienced are at the helm, not those who gain promotion via political or socialisim agenda. The USPS calls what the do a "service". Stand in line for 35 minutes at a Post Office, then walk up to the clerk and ask for a roll of stamps. The clerk replies "Of course sir/ma'am, do you have cash because our ATM is down." BE RETAIL WHERE PEOPLE ARE! NOT SOME SPECIAL LOCATION OR TIME BECAUSE IT CONFORMS TO SOME COLLECTIVE BARGAINING UNITS AGENDA.

    Nov 23, 2011
  • anon

    There is no substitute for the genuine article, which is a bona fide post office. I submit Benjamin Franklin knew what he was doing. The mail is too vital to trust to makeshift operations. Whatever they officially are titled, they are imitations. The federal government has bailed out the most undeserving enterprises and institutions. It can provide the USPS with essential funding. Case closed.

    Nov 20, 2011
  • anon

    Thanks to all who took the time to vote and post a comment on this blog.

    Nov 14, 2011
  • anon

    A Contract Postal Unit (CPU) is a retail postal facility located inside a retail establishment

    Nov 03, 2011
  • anon

    I also think it's a great idea that the CPUs are in the malls. makes things easier Adrian

    Nov 03, 2011
  • anon

    great idea I had not crossed his mind, is a good way to make life easier for people and generate extra income that does not require investing large sums of money and can put in any shop. bye

    Oct 27, 2011
  • anon

    A CPU is not like a standard post office, and a VPO is not even a reasonable <b>facsimile</b> of either of the above. We all know VPOs only exist because Union contracts prohibit new CPUs from having PO boxes. How do you invent a new type of CPU? Have it offer absolutely nothing. You can't weigh a package, you can't have them put stamps on it, you can't send anything non-Priority Flat Rate, you can't get Change of Address Cards there, you can't ask them questions, you can't get insurance or Delivery Confirmation, and you can't even get a letter postmarked there because all they have are these dumb boxes that do NOT represent the wide-ranging needs of various communities. People need more than least-common-denominator Bell stamps and Flat-Rate Priority boxes. VPOs are volunteer work forced onto local stores, guilt-tripped into "letting their town keep its ZIP code". They not post offices, and under NO circumstance should they be allowed to represent adequate service to a community. Instead of asking people whether they'd rather have a VPO or nothing, what you should be asking is "Why should people accept this trash in place maintaining their real Post Office, featuring a qualified professional?" What USPS needs is better customer service at its existing locations, particularly in urban communities. What customers need are trained USPS professionals to help them with the wide variety of services that USPS offers, and is obligated to fully offer, each community. CPUs are good additions the postal network, to SUPPLEMENT (not REPLACE) existing facilities. VPOs are trash.

    Oct 24, 2011
  • anon

    When the contract station employees and the village post office employees receive extensive retail training and are held accountable - then and only then will the service be as good as at your local post office. (this also should apply to PMR's - the extensive training) as it stands they have no concept of the indepth rules and regulations necessary for proper mail acceptance and procedures-- causing many unhappy customers...

    Oct 24, 2011

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