Background

The U.S. Postal Service uses contracted delivery suppliers to support mail delivery needs and ensure it meets its universal service obligation. CDS is a contractual agreement between the Postal Service and an individual or company for the delivery and collection of mail for customers. CDS is considered one of the Postal Service’s three primary carrier delivery types (city and rural carriers, and contracted delivery suppliers). CDS suppliers1 are not Postal Service employees, but independent contractors who provide delivery service on specific routes not serviced by city or rural carriers.

The objective of our audit was to assess the effectiveness of controls over CDS and its costs.

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Comments (10)

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  • anon

    Does anyone know approximately how much a HCR contract pays? About to send my bid. I would like to know what to ask for so my bid is competitive.

    Feb 03, 2020
  • anon

    The extra trips where I live are due to Amazon and the size of the packages. Most carriers in my office drive utility Van's and we are delivering furniture, grills, air compressors and things we should not be delivering. We are out of our vehicles at every house and yes we should be compensated for extra trips due to the fact that when we signed our contract it was to deliver mail and small packages now we basically work for Amazon. Those that do not deliver 250 Amazon packages a day along with our regular packages and mail should not voice their opinion on being compensated for extra trips.

    Jan 14, 2020
  • anon

    I never read in the contract where we signed on just to deliver mail and “small” parcels. I read where we are to deliver mail and parcels up to a half mile in our line of travel. Furthermore, I think mail volume should be considered risk of doing business with the USPS. If mail volume increases it’s on the Contractor to notify the Contracting Officer requesting more money for the increase in mail volume. The solution shouldn’t be an unlimited number of extra trips for the contract irregularity of not being able to carry the mail and parcels in one trip. The Contracting Officer should be fixing the problem, not the Post Master/Administrative person by just throwing tens of thousands of dollars and in some cases hundreds of thousands of dollars at the problem. This is waste and not how the system is supposed to work.

    Jan 16, 2020
  • anon

    This report is wrong. The definition of an extra trip is not as it is defined in the audit report. CDS routes are contracted to perform one trip. If they can’t do it in one trip it is a contract irregularity and a 5500 should be issued. CDS routes are also required to have a MINIMUM size CARGO space requirement. So, the “full vehicle policy” equating a “need” for the contractor to get an additional payment for an extra trip doesn’t make sense. It only makes sense if the contractor is an employee. The CDS is a business entity and it has been given the duties of mail service as outlined in the contract. Why should the USPS care if a CDS route “needs” another trip to perform a job it’s being paid to do in one trip? The CDS route is owned by the business entity, a sole proprietor or a corporation. The route is now the responsibility of the owner of the contract, not the USPS. So, if it takes the CDS route an extra trip, (sometimes 2 or 3 extra trips during the peak season) why should the USPS care? Why should the USPS be responsible for additional payments to CDS routes, when the CDS route is under contract for ONE TRIP? The CDS route should be responsible for any additional costs it incurs for additional trips, especially during the peak season. All this audit report shows is how the USPS is letting money be stolen from it, when it doesn’t have to let it happen. Tens of millions of dollars being wasted on additional payments for contract irregularities and nothing is being done about it. CDS routes are continually renewed.

    Jan 08, 2020
  • anon

    I work for a CDS in Pennsylvania, however, I am not the contract holder. I run the route 6 days a week and do my position very well, never have a problem. My contract holder has informed me that CDS has not paid her company for December 2019, therefore, I will not be getting paid. Now, I have been told that this has happened for no just reason or cause...but I have already worked for this pay for the whole month of December (as I am only paid monthly.) I do not know how to handle this because at this point now it is costing me money to drive my personal vehicle to deliver mail that I am not getting paid to deliver. Any help would be greatly appreciated.

    Jan 04, 2020
  • anon

    The USPS not paying your employer is not your problem. You don’t work for USPS. You are either the employee or subcontractor of the contract owner, you work for him/them. The sole proprietor or corporation should be paying you, regardless if they are being paid by the USPS or not.

    Jan 08, 2020
  • anon

    There is a Facebook group for HCR owners. We support each other & combine our knowledge of the business. https://www.facebook.com/groups/uspscontractmail/?ref=share

    Dec 31, 2019
  • anon

    We live in a rural area so we fall under the CDS Suppliers routes. The contracted employees that are delivering our packages are doing a poor job. If you go to our neighborhood app "Next-door", you will see all of the incidences of mishandling of the USPS mail and packages. Yesterday, we observed a service provider literally throw our packages over our gate. One of the packages had a small electronic in it. Last Christmas I had packages returned to the sender. When it didn't arrive, I called the sender and they told me it had been returned because it was not deliverable. There was no reason why it was not deliverable. I am seeing on our neighborhood app that this is a common occurrence here in Copperopolis, CA Something needs to be done. I hate to see USPS go away because no one wants to use them because of the poor services.

    Dec 16, 2019
  • anon

    How can i apply as an independent driver?

    Nov 23, 2019
  • anon

    5500 and a contact person overseeing contract were simply jokes. Had a stack of 5500's on one contract carrier on numerous issues. Turned out that several carriers were past due for security checks. The problem carrier did not pass drug test. But this was after months of poor deliveries, missing packages, customer issues, non deliveries and returning to office AFTER dispatch. So including 5500 to a specific person prior to issuing a new contract is an excellent idea. Other issue that comes to mind is emergency contracts are awarded at higher rates assuming to get a willing person on the route immediately. However, the route is never reevaluated and the higher rate continues to be paid, instead of returning the contract to a more accurate rate. Years of overpayment occur and continue. In this review, no notable vehicle inspection. Utilizing inspection such as rural carriers inspection would be useful

    Aug 22, 2019