The past few years have been tumultuous for the U.S. Postal Service. Mail volume has dropped 20 percent to 171 billion pieces from its peak in 2006, and over the last four years experienced unprecedented financial losses totaling $20 billion. In 2010 alone, the Postal Service experienced its largest 1-year net loss of $8.5 billion.
Contract fraud is a big problem for the federal government and quite possibly for the U.S. Postal Service, which currently manages over 20,000 contracts worth $29 billion. Conservative business estimates project up to 5 percent of contracted dollars are lost to fraud, meaning $1.45 billion of Postal Service funds are potentially at risk.
The American marketplace is experiencing constant changes in the ways that companies conduct business and communicate with customers. Like other businesses, the Postal Service must also innovate to stay relevant. The Office of Inspector General plans to examine innovation processes currently used by major U.S. corporations to learn about best practices/processes.
The Postal Service has evolved with the needs of a growing country for more than 230 years. A vast and complex network of processing facilities and transportation links was created to meet its universal service obligation. Today, the Postal Service has 260 Processing and Distribution Centers located throughout the country. This highly automated processing technology network provides incentives for its customers to presort the mail and drop ship it deeper into the network.
In response to a Government Accountability Office report and a Congressional request, the Postal Service introduced its Transformation Plan in 2002. Since then, the Postal Service has seen many changes, including a new postmaster general (PMG) and senior management team. Mail volume has declined due to electronic diversion and the recession. In addition, the Postal Accountability and Enhancement Act of 2006 changed how the Postal Service operates and conducts business.