The Universal Service Obligation
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The OIG has issued a series of reports on the Postal Service’s universal service obligation (USO) that provides information about the USO and lessons learned from other countries. Below are some highlights from this work.
U.S. Postal Service’s USO Is Not 100 Percent Defined
The Postal Service’s USO is made up of a collection of legal requirements and regulations. It covers attributes including geographic scope, range of products, access, delivery mode and frequency, pricing, and service. Some aspects are clearly defined, while others are open to interpretation.
There Are Limited USO Funding Options
Funding the USO has gotten more difficult as mail volume declines. Some foreign posts receive government funding for specific obligations. Other funding options include greater pricing flexibility and diversification.
Other Posts Have Reduced Their USO to Lower Costs
Some countries have chosen to change aspects of their postal USOs to reduce costs, including reducing delivery days, slowing delivery standards, removing certain products from being covered by the USO, and, less often, decreasing the minimum number of post offices.
It’s Important to Listen to and Inform Stakeholders
We’ve identified two key practices employed by other countries before changing their postal USOs — researching users’ needs and engaging stakeholders through the USO reform process.
