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The Universal Service Obligation

What is a Universal Service Obligation

 

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.

 

USO Guiding Principles

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.

USO Limited Funding

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.

USO Lower Costs

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. 

USO Listen to Stakeholders

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.