Competitive Outbound International Negotiated Service Agreement Pricing and Revenue Commitments
Background
A Negotiated Service Agreement (NSA) is a customized and mutually beneficial contractual agreement between the U.S. Postal Service and a specific mailer, customer, or organization to retain price-sensitive customers and encourage additional mail volume and revenue. An NSA provides for customized classifications and pricing under the terms and conditions established in the NSA and may include modifications to current mailing standards and other Postal Service requirements.
What We Did
Our objective was to assess processes, methodologies, accuracy of data, and internal controls for pricing competitive outbound international NSAs. We reviewed NSA data related to cost coverage, inflation, and contingency factors for fiscal years (FY) 2018 through 2021. We also reviewed Postal Service policies and procedures for minimum revenue commitments of NSAs, and FY 2021 through FY 2022, Quarter 2, data to determine the number of customers not meeting minimum revenue commitments.