Excess and Underutilized Space
Background
The U.S. Postal Service operates over 34,000 properties across the United States and its territories, ranging in size and functionality. Sometimes these properties experience operational changes or shifts in mail volume that may result in excess or underutilized space. Effectively managing these spaces could lead to more productive and cost-effective facility usage and operations.
What We Did
Our objective was to assess the Postal Service’s management of excess and underutilized space in its facilities. We reviewed policies, documentation, and data, and met with Postal Service officials.
What We Found
The Postal Service did not effectively manage excess and underutilized space as it does not have reliable data, the amount of this space throughout its network is unknown, and it does not have a comprehensive space reduction strategy. The data reliability issues occurred as the Postal Service lacks comprehensive data collection and verification processes and requirements. For example, we found no recorded assessments to collect space utilization data for over 63 percent of all properties (21,588). Postal Service staff acknowledged these data deficiencies and have begun initiating corrective actions. The continued lack of reliable data, however, limits visibility into excess or underutilized spaces that could drive more financially beneficial alternatives, such as operational repurpose, rental, or disposal. As a result, we estimate $14.8 million in potential lost rental revenue from August 2023 through July 2025.
Since 2017, the Postal Service also has not complied with a legal mandate to annually report excess space to Congress. Going forward, it will be crucial for the Postal Service to take immediate action to comply with this mandate, so decision-makers have pertinent information to support network modernization and related cost-reduction efforts.
Recommendations and Management’s Comments
We made seven recommendations, Postal Service management agreed with two and disagreed with five. We consider management’s comments responsive to recommendations 5 and 7. We are closing recommendation 4 as not implemented, as management stated it discontinued the calculation. We will pursue management’s disagreements with recommendations 1, 2, 3, and 6 through the audit resolution process. Management’s comments and our evaluation are at the end of each finding and recommendation.