Expands the main menu

Breadcrumb

Audit Reports

  • Image
    cover: Priority Mail Express: Michigan 1 District.
Dec
16
2024
Report Number:
24-135-R25
Report Type:
Audit Reports
Category: Service Performance

Priority Mail Express: Michigan 1 District

Background

Customers rely on Priority Mail Express (PME), the U.S. Postal Service’s fastest product, to ship important, time-sensitive documents and packages. PME comes with a money-back guarantee for nextday or two-day delivery. If a PME mailpiece does not arrive by the guaranteed date, customers have 30 days from the mailing date to request a refund. The Michigan 1 District’s service performance score was well below its goal for fiscal year 2024, impacting customer satisfaction and Postal Service revenue.

What We Did

Our objective was to evaluate the efficiency and service performance of the Postal Service’s PME product in the Michigan 1 District. We judgmentally selected 10 Postal Service facilities, observed operations, and interviewed headquarters, district, and local management to identify challenges with PME in the Michigan 1 District. We also analyzed data related to the service performance issues we identified, including postage refunds. The Postal Service requested an Advisory Opinion from the Postal Regulatory Commission on October 4, 2024, regarding, among other things, its PME service standards. Our fieldwork was completed prior to this filing; thus, we did not review it as part of this report.

What We Found

The Michigan 1 District did not always promptly deliver PME destined for customers in the district. In addition, PME that originated in the district was not consistently processed to allow for next-day or two-day delivery. Further, mail processing and delivery operations did not communicate effectively to ensure PME could be processed, transported, and delivered by the guaranteed delivery date. As a result, the Postal Service paid Michigan 1 District postage refunds of about $570,000 in FY 2024 and faced an average potential refundable revenue of about $41,000 every 30 days.

Recommendations and Management’s Comments

We made six recommendations to address the issues identified in the report. Postal Service management agreed to all recommendations. Management’s comments and our evaluation are at the end of each finding and recommendation. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to all recommendations, as corrective action should resolve the issues identified in the report.

Report Recommendations

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

Issue written expectations to deliver Priority Mail Express on the day it arrives from the processing facility, in accordance with current policies and procedures.

Closed $40,976 Agree
2

Develop a plan to enforce and monitor "Arrival at Unit" scanning requirements and delayed mail reporting.

Closed $0 Agree
3

Coordinate with the Detroit Network Distribution Center plant management to review the operating plan for Priority Mail Express, update it as necessary, clearly communicate it to employees, and develop a process to monitor for consistent execution.

Open $569,763 Agree
4

Coordinate with the Michigan 1 District Integrated Operating Plan Specialist to review and update the Integrated Operating Plans between the Michigan 1 District delivery units and Detroit Network Distribution Center to accurately reflect current transportation schedules and include Priority Mail Express arrival times.

Closed $0 Agree
5

Coordinate with the Michigan 1 District Integrated Operating Plan Specialist to communicate to the Michigan 1 District delivery units the requirement to report all mail arrival quality issues in the Mail Arrival Quality/Plant Arrival Quality application and develop a plan to monitor compliance.

Closed $0 Agree
6

Coordinate with the Michigan 1 District Integrated Operating Plan Specialist to communicate to the Detroit Network Distribution Center the requirement to report all plant arrival quality issues in the Mail Arrival Quality/Plant Arrival Quality application and develop a plan to monitor compliance.

Closed $0 Agree