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Audit Reports

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Mar
13
2015
Report Number:
MI-AR-15-002
Report Type:
Audit Reports
Category: Retail, Sales & Marketing

Retail Systems Software Deployment and Functionality

Background 

The U.S. Postal Service Office of Inspector General (OIG) conducted a self-initiated audit of Retail Systems Software (RSS). RSS is a new software solution that replaces existing retail point-of-service software, including software used in Post Office self-service kiosks.

In January 2012, the postmaster general approved $68.6 million to deploy RSS to post offices by the end of fiscal year (FY) 2013, but RSS was only deployed at four sites by that time. Deployment to pilot sites occurred primarily from May to September 2014. The deployment schedule has been revised, with full deployment now planned for December 2015.

In August 2014, the vice president, Engineering Systems, requested an additional $28.6 million for a help desk, other program development and implementation expenses, and a data conversion tool. This increased investment in RSS to over $97 million and reduced the expected return on investment from 41.3 percent to negative 9.8 percent and extended the deployment by 25 months to December 2015.

Management extended point-of-service, self-service kiosk, and contract access retail system software contracts through FY 2015 to accommodate deployment delays, at a cost of over $37 million.

Our objective was to review and evaluate the national deployment plan and functionality of RSS. R

What the OIG Found

Functionality issues delayed completion of the pilot. In addition, management stopped RSS deployment in December 2014 because of an unrelated temporary national freeze on information technology deployment. RSS was deployed at only 396 of the 700 planned pilot sites as of December 2014.

The Postal Service now plans to deploy RSS at 17,219 sites between February and December 2015. In January 2015, 1 month before deployment begins, management plans a 50-site test of the Office Data Import tool, which converts point-of-service data for import into RSS. Management does not know if Office Data Import tooI testing will be successful or if it will affect the start of the national deployment.

During our 16 site visits we found an average of three functionality issues per site that required a workaround process. These issues included screen freezes, money order transaction errors, processing surcharges, and a lack of application for international mail restrictions concerning height and weight and currency conversion. The RSS help desk also needs improvement. Inadequate functionality and help desk support can adversely affect the customer experience, the national deployment timetable, and users’ confidence in RSS.

The current deployment schedule is aggressive, making successful deployment in 2015 challenging. In addition, existing and future functionality issues may require more funding, which would further reduce the expected return on investment.

What the OIG Recommended

We recommended management complete the RSS pilot in retail offices, demonstrate self-service kiosk functionality, correct user-related functionality issues before initiating a national deployment, and evaluate and establish metrics to ensure the RSS help desk is adequately staffed with knowledgeable personnel and is able to support national deployment.

Report Recommendations

# Recommendation Status Value Management Response OIG Response USPS Proposed Resolution
1

R - 1 -- Deploy the Retail Systems Software at the remaining 304 pilot sites, demonstrate self-service kiosk functionality, and correct any user-related functionality issues before initiating a nationwide deployment.

Closed $0 Agree
2

R - 2 -- Evaluate and establish metrics to ensure the Retail Systems Software help desk is adequately staffed with knowledgeable personnel and is able to support national deployment.

Closed $0 Agree