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Audit Reports

Sep
16
2021
Report Number:
21-201-R21
Report Type:
Audit Reports
Category: Transportation / Vehicles, Service Performance

Management Alert – Air Mail Not Moving as Assigned at the Los Angeles Terminal Handling Services

Introduction

While conducting site visits at the Los Angeles Terminal Handling Services (THS) for our ongoing Air Mail Not Moving as Assigned audit, the OIG found significant opportunities to improve the Postal Service’s air carrier contract management. The purpose of this alert is to bring these issues to the Postal Service’s attention and make recommendations for immediate corrective action.

The Postal Service’s air transportation network costs for fiscal year (FY) 2021 were about $3 billion, as of July 31, 2021. In FY 2020, costs totaled $3.5 billion, an increase of about $390 million (or 12.7 percent) over FY 2019. These costs consisted of contracted services from [redacted], commercial airlines (CAIR), [redacted], supplemental charters, and THS operations.

Report Recommendations

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

Some or all of the recommendation is not publicly available due to concerns with information protected under the Freedom of Information Act.

 Closed $0 Agree
2

Confirm that transportation schedules are aligned to the volume arrival profiles for the 13 Postal Service facilities that are serviced by the Los Angeles Terminal Handling Services supplier, and tender mail as planned to the supplier.

 Closed $0 Agree
3

Provide proper oversight to ensure the Los Angeles Terminal Handling Services supplier is separating the mail properly to the assigned carrier, as outlined in the contract, and document and communicate commercial mailer irregularities.

 Closed $0 Agree
4

Reinforce the importance of correctly routing mail and using the assigned transportation according to Postal Service policy, and develop a formal communication plan to inform facilities when mail is misrouted.

 Closed $0 Agree
5

Develop and implement a formal process to hold the Terminal Handling Services supplier accountable for notifying Postal Service management when mail is misrouted and documenting the resolution in accordance with the terms of the contract.

 Closed $0 Agree