Expands the main menu

Breadcrumb

Audit Reports

  • Image
    cover image: photo of USPS tractor trailer.
Mar
27
2025
Report Number:
24-093-R25
Report Type:
Audit Reports
Category: Delivering for America, Labor Management, Human Resources, Service Performance, Transportation / Vehicles

Postal Service Vehicle Service Operations

Background

The Postal Vehicle Service (PVS) moves large mail volumes between U.S. Postal Service sites, intra-city delivery offices, local firms, and mailers. In fiscal year (FY) 2024, PVS incurred operating expenses of $1.3 billion. On November 30, 2022, the Postal Service and the American Postal Workers Union agreed to initiate a pilot that created a new bargaining unit position, Postal Vehicle Operators (PVO). The Postal Service also uses highway contract route (HCR) suppliers to transport mail between plants and other designated points. However, to facilitate the PVO Pilot Program, the Postal Service insourced several HCR contracts and established PVS operations at pilot sites.

What We Did

Our objective was to evaluate the Postal Service’s management of PVS operations. For this audit, we visited four sites and headquarters (HQs), and interviewed management at site, division, region, and HQ levels to gain an understanding of PVS operations, HCR insourcing, and the implementation of the PVO Pilot Program. Also, we analyzed data from various Postal Service systems to identify trends, patterns, and anomalies.

What We Found

Opportunities exist to improve PVS operations. Specifically, for the Pilot Program, management did not always insource HCR contracts when economically advantageous to the Postal Service, and there were opportunities to more effectively execute the PVO Pilot Program rollout. For the PVS program more broadly, management did not always maintain adequate staffing levels to effectively perform PVS operations or maintain adequate driver’s personnel records in appropriate Postal Service systems. During FY 2024, the Postal Service incurred $39.3 million in questioned costs for grievances and unauthorized overtime related to these issues.

Recommendations and Management’s Comments

We made 11 recommendations to address PVS operational deficiencies. Postal Service management agreed with two of our recommendations and disagreed with nine. Management’s comments and our evaluation are at the end of each finding and recommendation. The U.S. Postal Service Office of Inspector General considers management’s comments responsive to recommendations 4 and 11 as corrective actions should resolve the issues identified in the report. We will work with management through the audit resolution process on the remaining nine recommendations.

Report Recommendations

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

Clarify guidance for making insourcing decisions and develop more detailed cost comparison analysis and maintain records in support of insourcing decisions.

Open $0 Disagree
2

Insource highway contract routes when economically advantageous to the Postal Service and implement a waiver process when cost is not a main factor to insource.

Open $0 Disagree
3

develop a process to monitor and evaluate the operational efficiencies received from insourcing highway contract route contracts to determine if the expected benefits are being realized.

Open $3,226,098 Disagree
4

Require employees to complete the Postal Service Supervisor Program within one year of their initial appointment to a supervisory position, and refresher training at least every three years, and maintain appropriate records of completion.

Open $0 Agree
5

Develop and share documentation to communicate lessons learned from the challenges faced during the Postal Vehicle Operator Pilot Program to site management at future pilot sites.

Open $0 Disagree
6

Include specific requirements in the job announcements for Postal Vehicle Service operator positions (i.e. starting as part-time flexible or working outside of normal business hours).

Open $65,328,390 Disagree
7

Develop and make available the training to obtain a commercial driver's license to interested postal vehicle operators.

Open $0 Disagree
8

Determine complement and work toward hiring the number of schedule examiners vehicle runs and dispatch coordinators needed at nationwide Postal Vehicle Service sites.

Open $10,936,174 Disagree
9

Develop a process to ensure site management monitors the accuracy of drivers' license expirations and Department of Transportation physical due dates in the Vehicle Information Transportation Analysis and Logistics system.

Open $0 Disagree
10

Develop controls that prohibit users from entering invalid dates into the Vehicle Information Transportation Analysis and Logistics system.

Open $0 Disagree
11

Verify drivers received required safe driver training; and enforce policies that require managers and supervisors to maintain training records in the Learning Management System.

Open $0 Agree