VA sends hundreds of millions of pieces of mail annually as part of its  mission to provide care and benefits to veterans and their dependents. SMART data indicate that most of VA’s outgoing mail  was sent via USPS in fiscal year 2016, although VA facilities also used  UPS and FedEx. VA Is Not Managing Its Mail Program Effectively

VA is not managing its mail program effectively, as it lacks key elements  of an effective mail management program, including having reliable data  on mail volume and expenditures, agency-wide performance measures,  and mail managers with appropriate authority and responsibilities. First,  VA does not report reliable data to GSA because VA lacks a system to  track mail volume and expenditures consistently and does not have an  overall plan to source contracts for the mailing equipment that would  provide this capability in a more strategic manner. Second, VA is unable  to evaluate the overall efficiency of its mail program because its mail  management guidance has not been updated to include agency-wide  goals and performance measures for its mail operations. Finally, VA  cannot ensure consistent mailing practices in its administrations and  facilities because it has not provided mail managers with appropriate  authority and responsibilities to oversee mail operations across the  agency. Fragmented Process for Procuring Mailing Equipment Has Contributed to VA’s Inability to Track and Report Reliable Mail Cost and Volume Data

The mail data VA reports to GSA in its annual mail management report is  unreliable, in part because VA’s fragmented process for procuring mailing  equipment prevents VA from tracking mail volume and expenditures  consistently across facilities. For example, VA officials reported that facilities with newer mailing  equipment may have also purchased enhanced accounting software from  the vendor that enables them to track mail expenditures and volume by  service provider and individual classes of mail—such as Priority or First- Class Mail. The mail volume and expenditure data from roughly 200 VA facilities are  individually entered into SMART by VA personnel. VA’s inconsistent processes for tracking mail data are in part the result of  fragmented procurement practices for mailing equipment across the  agency in which different components of VHA and VBA make contracting  decisions for mailroom equipment independently. Further, VA may be expending unnecessary additional  funds on procuring mail equipment and missing opportunities to take  advantage of its substantial buying power. VA’s Mail Policy Does Not Include Agency-Wide Goals and Performance Measures

VA’s mail policy does not include agency-wide goals and performance  measures for mail operations, and as a result, VA is unable to determine  the extent to which its mail operations are efficient and effective. VA Has Not Provided Mail Managers with Appropriate Authority and Responsibilities

Although VA has designated mail managers at the agency and  administration levels, these mail managers have limited ability to oversee  mail operations across the agency because VA has not provided them  with appropriate authority and responsibilities. According to VA  officials, the responsibilities of the agency mail manager position are  limited to oversight of VA Directive 6340—the policy directive and  handbook that cover the mail program—with no operational role in mail  management. However, the  VHA and VBA mail managers reported that although they advise  individual facilities on mail management, they have no authority to direct  their mail operations. VA risks being unable to ensure that  its facilities are managing their mail costs as effectively as possible,  including obtaining available discounts. Because it lacks key elements of an  effective mail management program, VA cannot provide assurance that  facilities are managing their mail efficiently. Setting goals and  measuring performance allows organizations to track progress and  provides managers with the crucial performance data needed to make  management decisions. Determine and document the authority and responsibilities of the  agency and administration-level mail managers to enable them to  improve management and oversight of mail operations. Postal Service, and other interested parties.
Why GAO Did This Study

VA sends hundreds of millions of pieces of mail to veterans and their dependents, including prescription medications and information about benefits or disability compensation. However, VA's reported mail volume and costs—$355 million in 2016—are among the highest in the federal government. GAO was asked to review VA's mail management practices.
This report examines the extent to which VA manages its outgoing mail effectively. GAO identified key elements of an effective mail management program from federal regulation and internal control standards; reviewed VA-reported mail expenditure and volume data for fiscal years 2015 and 2016; collected information on mailing practices at 10 VA facilities with the highest mail volume in fiscal year 2015; and interviewed representatives of VA, GSA, the U.S. Postal Service, VA's two primary mailing equipment vendors, and two of the nation's largest veterans service organizations.

What GAO Found

The Department of Veterans Affairs (VA) is not managing its outgoing mail effectively as it lacks key elements of an effective mail management program, including reliable data on mail volume and expenditures, agency-wide performance measures for mail operations, and mail managers with appropriate authority and responsibilities.
Reporting reliable mail expenditure and volume data : The mail data VA reports to the General Services Administration (GSA) are unreliable, in part because VA's fragmented process for procuring mailing equipment prevents VA from tracking mail volume and expenditures consistently across facilities. Specifically, each fiscal year, hundreds of VA facilities individually enter their mail expenditure and volume data into a GSA database that collects mail data from federal agencies. These data are collected through inconsistent processes. For example, some facilities use mailing equipment and associated software that can automatically track volume and costs by service provider and mail class, while other facilities' equipment may be too old to have this capability or they use spreadsheets, bills, or receipts to track their costs. These processes are inconsistent because VA's different components and facilities contract for mailroom equipment independently of one another. VA lacks an overall plan to procure mailing equipment strategically. Through such procurement, VA could implement a system that would more consistently track data on mail expenditures and volume. This step would not only improve the reliability of these data but could also allow VA to take advantage of price discounts typically available under broader contracts.
Measuring performance : VA is unable to evaluate the overall efficiency of its mail program because its mail management policy does not include agency-wide goals and performance measures for its mail operations, and it has inconsistent measures across its facilities. For example, of the 10 VA facilities GAO reviewed, some assessed performance using customer service, efficiency, volume, and cost, while others used annual expenditures, among other measures. Updating the policy to include agency-wide goals and performance measures would allow VA to track progress toward consistent goals and provide it with crucial performance information needed to make programmatic decisions.
Mail managers with appropriate authority and responsibilities : VA's ability to oversee mailing practices across its facilities is limited because it has not provided its mail managers with appropriate authority and responsibilities, per federal internal control standards. The agency mail manager's responsibilities are limited to oversight of VA's mail policy, with no operational role in mail management. Additionally, mail managers for the Veterans Health Administration and Veterans Benefits Administration reported that they advise individual facilities on mail management but have no authority to direct their mail operations. Without determining appropriate authority and responsibilities for its mail managers, VA is unable to ensure that its facilities are managing their mail effectively.

What GAO Recommends

To manage its mail program more effectively, VA should develop and document a plan to improve how VA procures mailing equipment, update mail policy to include goals and performance measures, and determine and document the authority and responsibilities of the agency and administration-level mail managers to enable them to better manage and oversee mail operations. VA concurred with these recommendations.