May 13, 2019 (RARC-WP-19-004)

  • The Postal Service has significantly increased its use of package-product Negotiated Service Agreements (NSAs), which are customized contracts with individual shippers for discounted postage or special terms of service.
  • Overall, NSAs are solidly profitable for the Postal Service, though profitability varies significantly across agreements.

The Postal Service uses NSAs to better meet customer needs in the highly competitive parcel shipping market. The number of NSAs has grown from several dozen in 2012 to more than 1,000 as of 2018. These agreements must be approved by the Postal Regulatory Commission (PRC). Of the more than 1,400 domestic package agreements submitted to the PRC for review since 2006, all of them have been approved. While the regulatory bar is relatively low, the process for developing, approving, and managing NSAs is complex. The OIG made two recommendations to improve the performance and oversight of NSAs.

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  • anon

    I have read that they are just billing for time spent delivering?? ( up the driveway) If the cost of clerk time, load time. time to rearrange the stuff in the truck, one or two parcels can be a pain all the way around the route. amount of money to run the truck, Rates need to be raised. To lose money years over somethings off. Just like the mail and parcels fall off for count, would make a good report. Where does the mail go for count. some days we get nothing but 1st class letters. just saying we get paid for way less than we take out. Yet the PO still loses money.

    May 13, 2019

Contributors

  • Bryant Switzky, Ian Stanford, and Charles Crum contributed to this report.

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