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    Service Performance During FY 2025 Peak Cover
Jul
21
2025
Report Number:
25-036-R25
Report Type:
Audit Reports
Category: Service Performance

Service Performance During the Fiscal Year 2025 Peak Mailing Season

Background

Each year, increased mail volume during the U.S. Postal Service’s peak season —Thanksgiving through New Year’s Eve — significantly strains its processing and distribution network. In our prior reports, we discussed how Postal Service management developed a preparedness plan to address the strain with the right amount of personnel, resources, and capacity throughout its network.

What We Did

Our objective was to evaluate the U.S. Postal Service’s performance during the fiscal year (FY) 2025 peak and post-peak seasons, the implementation of its peak season preparedness plan, and operational changes to the network potentially impacting performance.

What We Found

The Postal Service lowered the performance targets for FY 2025, and it adjusted the data used to measure service performance during peak season. Even with those adjustments, the Postal Service did not meet five of the six service targets during peak season, and delays continued after peak season—a time during which the Postal Service experiences a high volume of returns—as well. Similarly, the Postal Service was not successful in meeting some of its retail and delivery goals during peak season.

Opportunities exist for the Postal Service to improve its peak season initiatives to better forecast for transportation needs in certain markets, strategically offload mail between processing facilities, and plan for the impact of increased package volume post peak season. In addition, we found that the Postal Service canceled 13,875 requested or scheduled transportation trips during the FY 2025 peak and post-peak seasons, resulting in costs of $8.8 million for the period of November 9, 2024, through January 31, 2025.

Recommendations and Management’s Comments

We made 10 recommendations to address the issues identified in the report. Postal Service management agreed with the monetary impact and five recommendations and disagreed with five recommendations. Management’s comments and our evaluation are at the end of each finding and recommendation. We consider management’s comments responsive to the five agreed to recommendations as corrective actions should resolve the issues identified. We will work with management through the audit resolution process on the remaining five recommendations.

Report Recommendations

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

Establish internal controls to ensure the Service Standard Directory is updated timely when service changes in specific markets.

Open $0 Disagree
2

Adjust package processing plans and staffing plans during peak season to ensure full capacity of machines is used to minimize delayed mail volume.

Open $0 Disagree
3

Direct and monitor division management decisions in the offload process during peak season to incorporate strategic factors, such as facility type, resources, and equipment capacity.

Open $0 Disagree
4

Develop a process for clear communication of offloads between all levels of processing and logistics functions.

Open $0 Agree
5

Reassess the methodology used for surface transportation planning to better estimate surface transportation needs and costs.

Open $0 Agree
6

Evaluate the reasons for cancellations of freight auction and repetitive highway contract route trips to reduce the associated excess payments for these trips during peak season.

Open $7,666,125 Agree
7

Assess and update peak season key performance indicators and initiatives.

Open $0 Agree
8

Develop measures and targets to evaluate the customer experience during peak season.

Open $0 Disagree
9

Adjust the timelines for peak initiatives to incorporate post-peak season package volume on operations.

Open $0 Disagree
10

Evaluate the reasons for cancellations of freight auction and repetitive highway contract route trips to reduce the associated excess payments for these trips during the post-peak season.

Open $1,153,611 Agree