Postal Contracts
The U.S. Postal Service Office of Inspector General (OIG) intends to award a Blanket Purchasing Agreement (BPA) to a qualified organization to assist OIG staff with specific subject matter expertise in areas such as Postal Economics, Financial Reporting, Transportation, Engineering, Supply Management, Delivery, Sales and Service, Information Technology (IT), and Network Optimization.
https://www.fbo.gov/spg/USPS/SSP/OIG/6HQOIG-10-A-0005/listing.html
The OIG has undertaken a project to upgrade existing analog Closed Circuit Television (CCTV) systems to an IP based camera system known as the Integrated Security and Investigative Platform (ISIP). The ISIP is to be deployed at USPS facilities nationwide in order to provide OIG Special Agents with enhanced video surveillance capabilities of activities occurring within USPS facilities.
https://www.fbo.gov/spg/USPS/SSP/OIG/6HQOIG-10-A-0006/listing.html
Direct Mail Online Solution
USPS is looking to enter into business relationships to enable access to a comprehensive, end-to-end, online direct mail solution targeted at Small and Medium size Enterprises (SME). The online solution will be:
• A convenient and easy-to-use, turnkey online service providing end-to-end functionality that allows SMEs to develop and execute direct marketing campaigns in a few simple steps.
• A standardized and scalable platform that can be leveraged across SME segments and distribution channels
https://www.fbo.gov/spg/USPS/SSP/PPHQ/RFI-SMEDM-03302010/listing.html
USPS eSourcing
All suppliers interested in doing business with the U.S. Postal Service should register their organization in the Supplier Registration module of the USPS eSourcing solution. Registration provides suppliers the opportunity to ensure their organization is included in this extensive supplier database. USPS eSourcing is a web-based electronic solicitation and reverse auction application that automates, standardizes, and streamlines the sourcing of supplies, services, equipment, transportation, and facilities. The solution is also utilized as one additional method for USPS to search for viable suppliers.
Supplier registration provides suppliers eligibility to participate in USPS eSourcing events. Suppliers can access the solution at https://uspsesourcing.emptoris.com. Once on the landing page, simply click on the “Register Supplier Organization” hyperlink to begin the registration process. Suppliers are encouraged to review the eSourcing Supplier Registration Guide (located at http://www.usps.com/suppliers/howto/registration.htm) prior to starting the registration process. This guide provides insight to completing the registration entry.
https://www.fbo.gov/spg/USPS/1/1/USPS-SUPPLIER-REGISTRATION/listing.html
PRC to Consider if Ending Saturday Mail Delivery is OK – Public Comment Invited
”Among key questions to be answered are: “Will the savings the Postal Service anticipates be as significant as they estimate? Will mail volume decline more than the Postal Service anticipates? Will businesses and citizens have service that remains adequate to meet their needs? And will the national economic impact of service reductions offset or add to the savings that are proposed?”
The PRC issued the following press release:
Washington, DC – The Postal Regulatory Commission today established Docket N2010-1 to thoroughly review whether the U.S. Postal Service plan to eliminate Saturday delivery should be implemented. The Postal Service is required to ask the Commission for an Advisory Opinion on any change in nationwide service it proposes. This is one of the most significant changes the Postal Service has ever presented to the Commission. www.prc.gov, by clicking the “contact PRC” tab to access a convenient online customer service form. To participate more formally in the process and to file documents to be included in the online public record, interested parties should click the “Filing Online” tab and follow the appropriate instructions.
“The Commission is the watchdog agency that determines if the Postal Service meets its Universal Service Obligation to the nation. Our process will provide multiple opportunities for the public to be heard and for all the facts to be considered before the Commission issues its Advisory Opinion,” said Chairman Ruth Y. Goldway. “The ball is in our court now. There will be no final decision until the record is complete.”
The Postal Service has advised the Commission that due to falling mail volumes and revenues it is considering eliminating Saturday mail collection and delivery except for Express Mail and existing post office box service. It submitted 11 pieces of testimony in support of its Request.
Commission procedures provide for public, on-the-record hearings to analyze and cross-examine the Postal Service’s “five-day” proposal and supporting evidence. During the process, mail users and interested members of the public may offer supporting or opposing views, both informally and as part of more formal, technical presentations. The Commission will also conduct as many as six field hearings and solicit public comments through its website. Dallas, Sacramento and Chicago are among the cities the Commission is considering for possible field hearing locations.
Chairman Goldway identified four areas that will be scrutinized. “Will the savings the Postal Service anticipates be as significant as they estimate? Will mail volume decline more than the Postal Service anticipates? Will businesses and citizens have service that remains adequate to meet their needs? And will the national economic impact of service reductions offset or add to the savings that are proposed?”
The elimination of one mail delivery day is not a new concept. It has been proposed many times and was the subject of extensive congressional review in 1977 and 1980. In 1983, the Congress adopted specific language requiring the Postal Service to maintain six-day delivery. The Commission’s Advisory Opinion will be considered by Congress as it reviews the Postal Service’s request to change the law.
The public is invited to share their views via the Commission web site,
The Postal Service proposal was electronically filed with the Commission at 3:34 p.m. today.
PRC Report Finds Excessive Postage Discounts
APWU News
Confirming charges the APWU has made for more than a decade, the Postal Regulatory Commission (PRC) concluded on March 29 that the Postal Service grants excessive postage discounts to large mailers. The USPS suffered a loss of $3.8 billion in Fiscal Year 2009.
The PRC’s Annual Compliance Determination (ACD) [PDF] identified 30 types of worksharing discounts that exceed USPS savings when work is performed by large mailers. According to a March 29 press release [PDF], the Postal Service demonstrated that “special circumstances” justify the discounts in only 17 instances.
Noting that federal law says that workshare discounts may not exceed “avoided costs,” the PRC concluded that “the appropriate action is for the Postal Service to align the discounts with the avoided costs” when it files its next request for a general rate increase.
The APWU is exploring options to help expedite the process of bringing postage discounts into conformity with the law.
Echoing APWU Concerns
The PRC findings echo concerns that the APWU has raised regarding the discounts offered to large mailers. “We are pleased the PRC has verified our claims: Postage discounts to large mailers are excessive,” said APWU President William Burrus. “They rob the Postal Service of needed revenue, and undermine the mission of the USPS to provide universal service at uniform rates.”
The PRC report notes that the APWU disagrees with the Postal Service’s “invocation of supposed policies and objectives” of the Postal Accountability and Enhancement Act as a counterpoint to the clear statutory requirements of the law. “It argues that the language of section 3622(e) is ‘clear and mandatory,’ requiring the Commission to ensure that discounts do not exceed avoided costs unless one of the exceptions within the section is met.”
In addition to the deficits created by worksharing, the report also attributed losses to mail volume declines caused by the recession and by a PAEA mandate that the USPS pay more than $5 billion annually to pre-fund retiree health benefits.
“The USPS business model is based on the premise that discounts for large mailers increase mail volume,” Burrus said, adding that the most recent findings by the PRC further suggest that despite disproportionate increases in discounts, mail volume has not increased.
Postal Service Files 5-Day Delivery Plan With Postal Regulatory Commission
WASHINGTON, March 30 – The Postal Service today took its case for five-day delivery to the Postal Regulatory Commission (PRC).
The Postal Service is required by law to seek an advisory opinion from the PRC any time a nationwide change in service is proposed. Today’s filing begins the PRC review.
A report accompanying the request notes, “The Postal Service does not take this change lightly and would not propose it if six-day mail service could be supported by current volumes. There is no longer enough mail to sustain six days of delivery.”
The five-day delivery proposal is part of comprehensive plan announced March 2, “Delivering the Future,” a roadmap intended to bring certainty to a viable Postal Service well into the future and to help it recover from dramatic losses in volume resulting from electronic diversion and exacerbated by the economic recession.
The five-day report notes, “Ten years ago, the average household received five pieces of mail every day. Today, it receives four pieces and by 2020, that number will fall to three. Reducing street delivery to five days will help rebalance postal operations with the needs of today’s customers. It also will save more than $3 billion a year, including reductions in energy use and carbon emissions.”
Postmaster General John E. Potter said it was important to stress that the proposal dealt only with Saturday street delivery and that Post Offices will be open on Saturdays, access to P.O. boxes would continue, Express Mail would be delivered seven days a week and incoming mail would still be processed.
“It’s five days of delivery, six days of service and Express Mail seven days a week,” Potter noted adding that postal processing operations would continue on a seven-day schedule.
In addition to a review by the PRC, it’s also necessary for Congress to refrain from enacting legislation that would require the Postal Service to generally deliver mail six days a week after the end of fiscal year 2010.
The Postal Service report can be found at http://www.usps.com/communications/five-daydelivery and the request for the advisory opinion can be accessed at prc.gov.
A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no direct support from taxpayers. With 36,000 retail locations and the most frequently visited website in the federal government, the Postal Service relies on the sale of postage, products and services to pay for operating expenses. Named the Most Trusted Government Agency five consecutive years and the sixth Most Trusted Business in the nation by the Ponemon Institute, the Postal Service has annual revenue of more than $68 billion and delivers nearly half the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 28th in the 2009 Fortune 500.
SOURCE U.S. Postal Service
PRC Report: Shortfalls in Some Products, Services Cost USPS $1.7B In FY 2009
Some workshare discounts exceeded the savings to USPS
Washington, DC – The Postal Regulatory Commission today issued its Annual Compliance Determination (ACD) assessing the financial and service performance of the Postal Service in fiscal year (FY) 2009.
The Commission reported that 14 separate Postal Service products or services failed to cover their direct costs. Shortfalls in these products cost the Postal Service $1.7 billion dollars in FY 2009. Despite surpluses in other products such as First-Class Mail, the Postal Service lost $3.8 billion overall.
The report also identifies 30 instances of workshare discounts offered to large mailers where the discounts exceeded the savings to the Postal Service from the work performed by the mailers. Only in 17 of those instances could the Postal Service show that special circumstances justified the discount.
In issuing the report Chairman Ruth Y. Goldway said: “The ACD is the primary tool established by the Postal Accountability and Enhancement Act to ensure that the Postal Service is accountable for and transparent in its operations and service to the public. Unlike the Postal Service’s recently announced ten-year plan, the ACD reports on where the Postal Service is now and provides direction on what can be done in the short term to improve revenues, service levels and equity among rate payers.”
The ACD also reported on the Postal Service’s performance for delivery of each distinct class of mail, on consumer access to postal services, and customer satisfaction. The Postal Service had generally high performance levels for delivery of First-Class letters, but it performed well below target delivery levels for periodicals and packages. The Commission closely monitors the Postal Service’s performance and is pressing for the further development of measurement systems to assure speed of delivery and customer satisfaction.
The ACD also provides a detailed analysis of the Postal Service’s deteriorating financial situation. It is questionable whether the Service has maintained the capacity to provide fundamental postal services to the Nation as required by law in the future. Mail volume declines caused by the severe economic recession, combined with longer-term trends that replaced mail with digital communications led to reduced revenues in FY 2009. But losses were also caused by the requirement – in place since 2007 – that the Postal Service annually prepay over $5 billion for retiree healthcare benefits. The Postal Service ended FY 2009 with a $3.8 billion loss despite receiving $4 billion in temporary legislative relief from its requirement to prepay those benefits.
In the interests of clarity and accountability, Chairman Goldway filed a separate, concurring opinion choosing to use the term “not in compliance” to describe Postal Service results that did not meet provisions of the law. But she affirmed that all of the regulatory directives to the Postal Service detailed in the report were adopted unanimously by the Commission.
“The Commission will play an essential role in the upcoming public debate on the future of the Postal Service and the future of universal service to the Nation. Our agency will provide the platform for all interests and all issues to be considered fairly. We will put to use our expertise in evaluating postal costs, analyzing economic trends and bringing together all parties in the mailing community. The ACD is a fundamental tool in that process.”
The Postal Regulatory Commission is an independent federal agency that provides regulatory oversight over the U.S. Postal Service to ensure the transparency and accountability of the Postal Service and foster a vital and efficient universal mail system. The Commission is comprised of five Presidentially-appointed and Senate-confirmed Commissioners, each serving terms of six years. The Chairman is designated by the President. In addition to Chairman Goldway, the other Commissioners are Vice Chairman Tony Hammond, Dan Blair, Nanci Langley, and Mark Acton.
Letter Carriers union assails Postal Service for lobbying public to end Saturday delivery
Rolando says only Congress can authorize cutback
NALC launches “5-Day is the Wrong Way” website to keep public informed
WASHINGTON — The national president of the 295,000-member National Association of Letter Carriers union (NALC) today criticized the U.S. Postal Service for arrogantly lobbying the general public with a misleading Internet web site to win approval of elimination of Saturday mail delivery despite the fact that Congress has shown little interest in such a move.
NALC President Fredric V. Rolando said the recently announced postal web site offers misleading information and planning guides for businesses and households regarding its plan to cut Saturday collection and mail delivery services.
“The arrogance of the Postal Service in this campaign to lobby the public to embrace five-day delivery as the answer to the Postal Service’s problem is astounding,” he said. “Given that Congress has shown very little interest in eliminating Saturday service and must approve any change, the Postal Service should focus its energies on real solutions, not risky and counterproductive service cuts.”
“The Postal Service should stand down on this reckless drive to end Saturday delivery,” Rolando added. “It would do more harm than good and it distracts us from the real solution, eliminating the crushing burden of a deeply flawed health benefits pre-funding policy.”
Rolando said the Postal Service’s move has forced the union to set up its own special web site that will provide the news media and general public with complete information on why the proposed change to five-day delivery is the wrong way to go to secure the long-term viability of the Postal Service.
The NALC special web site is http://nalc.org/postal/reform/index.html.
“What makes matters worse is that the Postal Service is sending a very confusing message to Congress,” Rolando said. “Just a week ago, Postmaster General John Potter told a Senate hearing that ‘we wouldn’t have to go to five-day delivery’ if Congress corrected the deeply flawed retiree health pre-funding policy.”
Rolando emphasized that the decision to reduce the level of service and slow mail service in America is not the Postal Service’s to make.
“Only the Congress can authorize this change. The web site and the public relations campaign launched by the Postal Service appears designed to fool mailers and the American people that 5-day delivery is a done deal,” Rolando added.
He said the Postal Service took the outrageous step to launch the deceptive web site:
- Despite the fact that current law requires 6-day delivery and that Congress has not given its approval to the Postal Service’s proposal to cancel delivery and collections services on Saturday;
- Despite the fact that neither the Appropriations Committees nor the Postal Service’s oversight committees have even held hearings on the radical proposal to slow service and destroy 50,000 to 80,000 good jobs in the middle of a jobs crisis; and
- Despite the fact that the Postal Service had not yet filed for an advisory opinion from the Postal Regulatory Commission (PRC), which must hold hearings and subject the Postal Service’s questionable financial claims to democratic scrutiny.
Over the past few years, the NALC has led the drive to reform the pre-funding policy. That drive has been assisted in recent months by reports of the Postal Service’s own Inspector General that show that, measured accurately, the USPS surplus in the Civil Service Retirement Fund is large enough to fully fund future retiree health benefits. Fixing this problem would save the USPS at least $8 billion annually — far more than the speculative $3 billion annual savings the USPS claims it can get from reducing service.
Reader: Why Is USPS Considering PFP Bonuses For Management?
A PostalReporter.com reader asks the following question:
Interesting to note, since the USPS is claiming such a financial crisis, why would they even consider more Pay-For-Performance (PFP) bonuses for management?
From USPS News Link:
MID-YEARS FOR PFP. The FY 2010 mid-year process for the Pay-for-Performance Plan (PFP) is just around the corner. Before the process begins, click here <http://performance.usps.gov/> to log onto the Performance Evaluation System to make sure your profile is correct. Pay close attention to the finance number, National Performance Assessment unit and position type. Also, make sure your profile reflects any detail assignments. Contact your PFP coordinator if you have any questions.
The review period begins March 31 and lasts until May 14. Click
here<http://blue.usps.gov/humanresources/professionalportal/erm/ser/pay%20for%20performance.shtml> for more information on PFP.
An explanation of PFP posted earlier this year:
From USPS:
Pay For Performance
“There were 735 executives in 2009, including 42 officers and 83 newly appointed executives. 65 executives participated in one or more of the course offerings for executives.”
“A pay-for-performance program is in place for non-bargaining employees, and managers are compensated in part based on the degree to which their personal accomplishments — and the accomplishment of their unit (e.g., Post Office, plant, and district) contribute to overall success. These employees do not receive automatic salary increases, nor do they receive cost of living increases or locality pay.”
The Postal Service’s Pay-for-Performance (PFP) program continued to drive organizational achievement. (Performance results are highlighted in Chapter 6.) Unlike most government agencies that provide regular, across-the-board pay increases, PFP is the sole source of annual pay adjustments for non-bargaining unit employees.
The award-winning program has been cited by several independent entities as a model for other agencies to emulate. The foundation of the evaluation system is a balanced scorecard of objective, independently verifiable measures of service, workplace environment, productivity, and financial performance. Performance indicators are measured at national, area, district, business unit, and individual levels so that meaningful performance distinctions are made within the line-of-sight of all managers. Individual contributions are linked to organization success through these performance indicators. Core performance requirements and individual results are recorded in the Performance Evaluation System.
South Dakota Postmaster Pleads Guilty to Theft
US Attorney Brendan V. Johnson announced that Colleen K. Mouw,age 52, of Elk Point, SD, appeared before US Magistrate Judge John E. Simko on March 25, and pled guilty to an Information that charged her with theft of government funds. The maximum penalty upon conviction is one year in prison and/or a $100,000 fine, plus restitution. Mouw was the postmaster at the Jefferson, South Dakota, Post Office. Between May 2007 and May 26, 2009,she made application to the United States Postal Service and received reimbursement for expenses she indicated were incurred on behalf of the Postal Service, which expenses were not reimbursable. The amount stolen was less than $1,000. The investigation was conducted by the United States Postal Service Office of Inspector General. The case is being prosecuted by Assistant US Attorney Connie Larson. A presentence investigation was ordered, and a sentencing date will be set. The defendant was released on bond pending sentencing.
Lawmakers Join Forces to Propel Postal Service Issues to the Forefront
WASHINGTON, D.C. – On March 25, 2010, Reps. Lynch, Chaffetz, and Davis announced the reconvening of the Congressional Postal Caucus (CPC). Recently, the United States Postal Service unveiled a new business model to address unprecedented challenges largely due to the current economic environment and the rise in alternative means of communication. If nothing is done, the Postal Service expects to have an $8 billion shortfall by September 30, 2010 and suffer a net loss of $238 billion over the next 10 years.
Bringing the CPC back on line is intended to inspire and stimulate new ideas on how to put the Postal Service back on sound financial footing, assess the benefits and drawbacks of the proposals in Postal Service’s new business plan, and help Federal Policymakers tackle important postal matters such as 6-day delivery. The caucus will allow for a productive exchange of information and insight among members and will make sure that Congress is well-equipped to provide successful, permanent solutions to the Postal Service’s current and future issues. Collectively, the Members of the Congressional Postal Caucus will evaluate all viable options for securing a robust and vibrant Postal Service for years come.
According to CPC co-chair, Stephen F. Lynch, “The Congressional Postal Caucus will ensure that Congress effectively addresses the most challenging and important postal issues of our time. I am excited to be involved with the restoration of this important organization and am looking forward to seeing the benefits that this collaborative effort will bring to the entire postal industry.”
“The U.S. Constitution grants Congress the authority to establish a postal system. In recent years, despite significant increases in productivity and reductions in work force, the US Postal System still faces significant fiscal challenges due to changes in consumer preferences. The Postal Caucus will serve as a forum to discuss proposals to restore fiscal stability to the USPS,” CPC co-chair Jason Chaffetz said.
“The challenges facing the Postal Service reflect, in large part, deep going technical, economic and social changes now transforming our information infrastructure. The Congressional Postal Caucus will provide an indispensable forum for the development of public policy consistent with the all of the demands we place on the Postal Service of the 21st century,” advised Danny K. Davis, CPC co-chair.
House Subcommittee Approves Measures to Benefit Federal Employees
WASHINGTON, D.C. – On Wednesday, March 24, 2010 at 10 a.m. in room 2154 of the Rayburn House Office Building, the Subcommittee on held a business meeting and approved several priority pieces of legislation.
Introduced by Subcommittee Chairman Stephen F. Lynch (D-MA), H.R. 4489 will strengthen federal oversight of the prescription drug benefits available to federal employees through the Federal Employees Health Benefits Program (FEHBP). Specifically, the FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act will provide the Office of Personnel Management (OPM) greater contract authority over Pharmacy Benefit Managers to better ensure that federal workers and retirees, as well as taxpayers, are receiving the best benefits at the best price.
In addition, H.R. 4865, the Federal Employees and Uniformed Services Retirement Equity Act of 2010, introduced by Chairman Lynch and Subcommittee Ranking Member Jason Chaffetz (R-UT), will allow federal and postal employees, as well as members of the armed forces, to deposit unused annual leave into their Thrift Savings Plan (TSP) accounts. The legislation will allow the TSP to remain in line with the offerings currently available to private-sector workers participating in 401(k) plans.
Furthermore, H.R. 1722, the Telework Improvements Act of 2009, introduced by Rep. John Sarbanes (D-MD), will serve to improve the effectiveness of telework programs across the federal government. In response to agency and employee concerns regarding the current underutilization of telework, H.R. 1722 will require each agency to designate a Telework Managing Officer and implement a series of agency reporting requirements in order to enhance the availability of information regarding the status of individual agency telework programs.
Finally, H.R. 3913, the Major General David F. Wherley, Jr. District of Columbia National Guard Retention and College Access Act, introduced by Rep. Eleanor Holmes Norton (D-DC), will significantly broaden the educational opportunities available to members of the National Guard of the District of Columbia by authorizing additional grant funding for education assistance. Per a Manager’s Amendment offered by Chairman Lynch and approved by the Subcommittee, D.C. National Guard members will receive up to $6,000 in education assistance per year.
“By approving H.R. 4489, the FEHBP Prescription Drug Integrity, Transparency, and Cost Savings Act, I’m pleased that the Subcommittee has taken the first step towards ensuring greater transparency and accountability in FEHBP contracting for the benefit of our hardworking federal and postal employees, and for federal taxpayers at large,” said Chairman Stephen F. Lynch. “I’m also pleased by the Subcommittee’s action on H.R. 4865, H.R. 1722, and H.R. 3913, all of which represent common sense solutions to enhancing the federal government’s workforce recruitment and retention efforts, as well as that of the D.C. National Guard.”
H.R. 4489, H.R. 4865, H.R. 1722, and H.R. 3913 have now been referred to the full Committee on Oversight & Government Reform for further consideration.