Background

Nonmachinable Outside (NMO) parcels are packages that, because of their size, weight, or other characteristics, cannot be processed through automation and must be handled through a more labor-intensive and costly manual process. The term “outside” is used for these parcels because they cannot be placed in sacks or other mailing containers for automated processing.  

The Postal Service planned to perform cost-benefit analyses when the pilot was finished to assess the results and determine whether to implement it nationwide.

Our objective was to evaluate the costs associated with the pilot program to process NMOs through the use of an outside contractor. In the future, we plan to evaluate productivity and efficiencies associated with NMO processing. 

What The OIG Recommended

We recommended the vice president, Network Operations, include all costs, internal and external, when evaluating the results of the NMO pilot and before proceeding with a nationwide program