The Postal Service is unable to demonstrate that it saves money by outsourcing, according to a recent Government Accountability Office (GAO) report, because it has no comprehensive mechanism to measure savings.
“Without cost-savings data, postal managers, stakeholders and Congress cannot assess the risk and value of outsourcing,” the GAO concluded. Nonetheless, the USPS will continue to “explore outsourcing opportunities” and is considering another major outsourcing initiative involving its bulk mail processing network, the report noted.
The GAO recommended that the Postmaster General establish a process to track the results of outsourcing activities that are subject to collective bargaining and report the results to Congress. Although the Postal Service generally agreed with the report’s findings, the USPS disagreed with recommendation to provide Congress with the information about the results of outsourcing.
In its study, Data Needed to Assess the Effectiveness of Outsourcing [PDF], the GAO cautioned that the inability of the USPS to provide accurate data could make it difficult “to generate support for future outsourcing efforts.”