Upcoming Audit Work

Contract Delivery Services (CDS) are a contractual agreement between the Postal Service and an individual or company for the delivery and collection of mail to and from homes and businesses. CDS offers a cost-effective way for the Postal Service to extend its reach while maintaining control over business expenses. In many cases, CDS routes provide an efficient method for delivering mail to communities, especially in rural or underserved areas.

Our audit will evaluate the management, efficiency and safety of CDS operations. Specifically, we will evaluate supplier costs, vehicle requirements, driver safety, and security measures for CDS routes.

The Postal Service categorizes employees into two primary groups: career and pre-career. Career employees receive a full range of benefits while pre-career employees do not yet have permanent status and do not receive full employee benefits.

As mentioned in its 10-Year Delivering For America Plan (DFA), the Postal Service began to increase the number of employees converted from pre-career to career positions. However, this increased compensation costs for the Postal Service. Our objective is to assess the financial and service-related impacts of the Postal Service's employee composition.

The Postal Accountability and Enhancement Act of 2006 (PAEA) amended portions of Title 39 U.S.C. regarding maximum compensation limits for employees, executives, and officers. The Postal Service has limited ability to pay specific executives over the maximum amount allowed by the executive schedule, either through bonuses or additional pay authority. Our objective is to determine whether the U.S. Postal Service complied with applicable maximum total compensation provisions of the Postal Accountability Enhancement Act of 2006 (PAEA) and related Postal Service policies and guidelines for calendar year (CY) 2025.

In fiscal year 2025, the Postal Service spent over $15 billion through contracts to buy a wide variety of products and services, ranging from delivery vehicles to common office supplies. Contracts specify the business requirements, price, payment arrangement, and other terms and conditions for procurement. Given the amount of funds spent and the missions these contracts support, it is critical that Postal Service procurement leaders manage their specific portfolios effectively. The objective of our audit is to evaluate the Postal Service’s oversight of its contracts, including pre-award and post-award processes.

The Delivering for America (DFA) plan, released in 2021, outlines the Postal Service’s 10-year strategy to improve service and achieve financial sustainability. In 2024, DFA 2.0 provided an updated blueprint for its path forward. Since the release of the DFA plan, the Office of Inspector General has integrated independent and objective reviews of its implementation into our work. This is the fourth in our series of DFA oversight reports. Our objective is to evaluate how the Postal Service’s Delivering for America (DFA) plan has evolved since implementation.