With a large network of facilities and post offices, and yet mail volumes in decline, the U.S. Postal Service finds itself with a good deal of unused capacity. The dynamics over closing and consolidating facilities has raised the question of whether there are other uses for them. Further, the Postal Service could still own the facilities even after it closes or consolidates operations. Rather than sit empty, could the Postal Service use some of that capacity in non-traditional ways to generate additional revenue?
The U.S. Postal Service can play unique and positive roles in the expansion of the peer-to-peer marketplace, as suggested in a new OIG white paper, Peer-to-Peer Commerce and the Role of the Postal Service. American consumers are familiar with peer-to-peer (P2P) digital commerce and increasingly comfortable buying and selling that way. Millions of people place offerings and shop on eBay, Craigslist, etsy, and other sites every day.
Even with smartphones, high-speed Internet, and other modern technologies, Americans spend an inordinate amount of time running errands. Interacting and conducting business with our government is no exception. It can be time-consuming. Wouldn’t it be great to use the local Post Office as a one-stop center for doing business with government? Or, what if the U.S. Postal Service had a digital platform to access government services or information online?
Some have argued that the U.S. Postal Service should be allowed to raise prices in order to increase revenue and ensure that the sales of their products cover their costs. Others have argued that the current costing system may overstate the cost of some products, as it assumes the Postal Service is able to adjust its capacity, such as quickly closing a facility or eliminating a tour, to match the decline in mail volume.
U.S. Postal Service employees are covered by the Federal Employees’ Compensation Act (FECA), which provides workers’ compensation benefits to civilian federal employees who sustain work-related injuries or an occupational disease. The U.S. Department of Labor Office of Workers Compensation Programs (OWCP) administers workers’ compensation and provides direct compensation to providers, claimants, and beneficiaries. The Postal Service later reimburses OWCP in what is known as “charge-back billings.”