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Moving Mail by Rail

Audit Reports

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Report Number:
Report Type:
Audit Reports
Category: Transportation / Vehicles, Service Performance, Delivery / Mail Processing

Moving Mail by Rail


The U.S. Postal Service launched a pilot program to transport mail by rail on July 14, 2020, under a contract with Contractor #1. On November 10, 2021, the Postal Service expanded rail service using a second contractor, Contractor #2. The intent of moving mail by rail is to reduce as many Highway Contract Route trips as possible and fully optimize the surface transportation network.

What We Did

Our objective was to evaluate how the Postal Service identifies opportunities for moving standard mail on intermodal transportation and monitors rail transportation network performance. To accomplish our objective, we conducted observations at the Los Angeles Network Distribution Center (NDC) and interviewed Postal Service management at the eight NDCs using rail service. Additionally, we reviewed contracts and performance data for the scope period of July 14, 2020, to June 30, 2022

Report Recommendations

# Recommendation Status Value Management Response OIG Response USPS Proposed Resolution

Develop a standard operating procedure and training for the intermodal transportation program that
addresses oversight responsibilities and how to monitor and address any performance issues.

Closed $901,884 Agree

Develop an Intermodal (Rail) Performance
Dashboard to monitor performance for Contractor #2.

Closed $0 Agree

Review the Intermodal (Rail) Performance
Dashboard for accuracy and consider developing additional metrics for the intermodal transportation dashboards and
aligning with Surface Visibility transportation metrics.

Closed $0 Agree

Issue supplemental guidance to the sites that use the intermodal transportation program and ensure the Contract Irregularity Reporting process is being followed.

Closed $0 Agree