Upcoming Audit Work

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.  

In March 2021, the U.S. Postal Service released its 10-year strategic Delivering for America (DFA) plan, to address continuing annual financial losses, unmet service performance goals, and evolving public and consumer demands. Over the past five years, the Postal Service has undertaken major initiatives to build a best-in-class mail and package processing network. These efforts include establishing Regional Processing and Distribution Centers, creating Regional Transfer Hubs, and implementing the Regional Transportation Optimization program. Our objective is to determine the impacts that network change initiatives have had on the Postal Service and its stakeholders.

This audit is in response to a congressional request to identify causes of mail delays. This audit will examine how Delivering for America network changes such as transportation optimization and processing consolidations affect service performance in South Dakota. South Dakota mail may often travel long distances out of state for processing. Transportation changes, planned conversions to local processing centers, and revised service standards further influence delivery times, which can range from two to seven days. Rural areas may be especially impacted.