Delivery Performance Information Has Expanded but Remains Incomplete, and PRC Has Not Fully Assessed Causes of Incomplete Data or the Effectiveness of USPS Actions

		Measurement of Delivery Performance Has Expanded but Remains Incomplete

USPS’s measurement of on-time delivery performance has expanded  greatly over the past 9 years, but remains incomplete because only about  55 percent of market-dominant mail volume is currently included in  measurement. Notably, USPS implemented measurement  systems for bulk First-Class Mail, Standard Mail, and Periodicals. PRC established a  public inquiry docket (a type of proceeding) to review USPS’s proposal,which is still ongoing as of September 21, 2015. PRC Has Not Fully Assessed the Causes of USPS’s Incomplete Measurement Data and USPS’s Actions to Improve Data Quality

Although PRC reports have provided data on the amount of mail included  in measurement of delivery performance, these reports have not fully  assessed why these measurements were incomplete or whether USPS  actions will achieve complete performance data. Complete  information is vital for effective management, oversight, and  accountability purposes. 1. While there is not a minimum  threshold of mail that is to be included in measurement for it to be  representative, the risk that measurement is not representative increases  as more mail is not included in measurement because on-time delivery  performance may be different for mail that is included in measurement  from mail that is not included. USPS and PRC annual compliance  reports provide delivery performance analysis, as legally required. This analysis, however, does  not facilitate an understanding of results and trends below the national  level, such as for USPS’s 67 districts, to identify variations and areas  where improvements in performance may be needed. Rural Delivery Performance Information Is Not Required to Be Reported

USPS and PRC are not required to report—and do not report—delivery  information for rural and non-rural areas, thus limiting effective oversight  in these areas. However, USPS and PRC were not  able to provide specific cost estimates related to having USPS measure  and report on delivery performance in rural and urban areas. USPS and PRC annual and quarterly reports on delivery performance  information are not as useful for oversight purposes beyond the annual  compliance assessments because they do not include sufficient analysis  that would facilitate holding USPS accountable for meeting its statutory  mission to provide prompt, reliable, and efficient services in all areas of  the nation, including rural areas. USPS believes  that such an analysis would be costly, even though it does not know how  much it would actually cost. Such cost information would be useful for  Congress to have in order to assess whether developing this information  would be appropriate. Matter for Congressional Consideration

To assist in determining whether to require USPS and PRC to report on  delivery performance for rural and non-rural areas, Congress should  direct USPS to provide cost estimates related to providing this  information. To improve the usefulness and transparency of USPS’s and PRC’s  reporting of delivery performance information, we recommend that:
The Postmaster General provide additional and readily available  delivery performance information, such as trend data for on-time  delivery performance for all 67 postal districts. PRC and  USPS agreed with the recommendations addressed to them. Specifically,  PRC agreed to hold a proceeding to address how USPS can improve the  completeness of USPS’s delivery performance—after, as we reported,  initially indicating it was opposed to such a proceeding. Postal Service’s (USPS) measurement  of mail delivery performance and the Postal Regulatory Commission’s  (PRC) oversight of this measurement and (2) USPS’s and PRC’s  reporting of this information.
Why GAO Did This Study

USPS is in the difficult position of balancing cost-cutting actions to address its poor financial situation with efforts to provide prompt, affordable, and reliable mail service. GAO has previously reported that complete, useful, and transparent delivery performance information is essential for USPS and stakeholders to understand USPS's success in achieving this balance.
GAO was asked to review how USPS measures delivery performance and how PRC assesses this information. GAO assessed (1) USPS's measurement of mail delivery performance and related oversight by PRC and (2) USPS's and PRC's reporting of this information. GAO reviewed USPS and PRC delivery performance data for fiscal years 2010-2015, delivery service standards, and measurement system documents, as well as applicable laws and leading practices identified in GAO's prior work.

What GAO Found

U.S. Postal Service (USPS) measurement of on-time delivery performance has expanded greatly over the past 9 years, but remains incomplete because only 55 percent of market-dominant mail (primarily First-Class Mail, Standard Mail, Periodicals, and Package Services) is included (see fig.). The remaining 45 percent is excluded due to various limitations, such as not having barcodes to enable tracking. Incomplete measurement poses the risk that measures of on-time performance are not representative, since performance may differ for mail included in the measurement, from mail that is not. Complete performance information enables effective management, oversight, and accountability. In addition, the Postal Regulatory Commission (PRC) has not fully assessed why USPS data are not complete and representative. While PRC's annual reports have provided data on the amount of mail included in measurement, they have not fully assessed why this measurement was incomplete or whether USPS actions will make it so. PRC may initiate a public inquiry docket (a type of proceeding) to improve data quality and completeness, but has not done so. Such a proceeding could facilitate evaluating data quality and identifying areas for improvement, as well as actions and time frames to complete improvements.
USPS's and PRC's reports on delivery performance are not as useful as they could be for effective oversight because they do not include sufficient analysis to hold USPS accountable for meeting its statutory mission to provide service in all areas of the nation. USPS's and PRC's reports provide analysis, as legally required. However, this national-level analysis does not facilitate an understanding of results and trends below the national level, such as for USPS's 67 districts, to identify variations and areas where improvements are needed. Further, delivery performance information is not sufficiently transparent or readily available. USPS posts only the most recent quarterly report on its website making it difficult for stakeholders to access trend data. Also, USPS and PRC are not required to provide—and do not report—performance information for rural areas. While several Members of Congress have recently requested studies on rural delivery performance, USPS has stated that such analysis would be costly, even though it could not provide specific cost estimates. Such cost information would be useful for Congress to assess whether developing this information would be appropriate.

What GAO Recommends

To assist in determining whether to require USPS and PRC to report on delivery performance for rural areas, Congress should direct USPS to provide cost estimates related to providing this information. Further, GAO recommends that USPS and PRC take steps to improve the completeness, analysis, and transparency of delivery performance information. USPS and PRC agreed with the recommendations addressed to them, but disagreed with certain findings on which they are based. GAO believes these findings are valid, as discussed in this report.