To obtain information needed to align access to retail  services with customer needs, the Postal Service indicated that it would  establish a national facility database and develop a criteria-based  methodology to determine which facilities to close. FDB Does Not Meet the Postal Service’s Goal or Leading Federal Practices for Capturing and Maintaining Accurate Facility Management Data

Developed in 2003, FDB has not achieved the Postal Service’s anticipated  goal or conformed to a leading federal practice that calls for a  consolidated source of accurate facility data because the data entered into  FDB are not reliable. The Postal Service has taken steps to improve the database, but  systemic problems remain. The Postal Service’s Facility Data Do Not Meet Leading Federal Practices for Tracking Facility Management Performance and Trends

Even if the data in FDB were reliable, they would not meet leading federal  practices for facility data because FDB (1) does not contain fields for the  four performance measures recommended by the Federal Council—a  facility’s importance, utilization rate, condition, and annual operating  costs—and (2) does not allow for tracking trends. The Postal Service Has Initiated Actions to Assess the Condition of Its Facilities but Lacks a Strategic Approach for Prioritizing Maintenance Projects

The Postal Service has initiated actions to assess the condition of its  facilities, but has not yet assessed the magnitude of its maintenance  backlog or strategically prioritized its maintenance projects—a leading  federal practice. According to this assessment, two-thirds of the facilities were in  less than “acceptable” condition, including 22 percent that were in “poor”  condition. Postal officials told us that this insufficient funding  has caused the Postal Service to focus exclusively on reactive  maintenance—that is, “emergency” and “urgent” repairs—at the expense  of routine repairs. The Postal Service Has Expanded Alternative Access to Its Services but Lacks Performance Data to Identify Potentially Unneeded Retail Facilities for Closure

To address the challenge of aligning retail access with customer needs, the  Postal Service has expanded alternative access to its services in  underserved areas but has done less to curtail services in overserved  areas. Our analysis shows wide variation in the number of postal retail  facilities among counties of similar population, land area, and degree of  urbanization—demonstrating the Postal Service’s challenge of placing  facilities where they are needed. While considering these criteria  is essential for rightsizing a facility network, the Postal Service cannot  consider them because it does not capture the data needed to do so. During our review, we visited a number of postal facilities that appeared to  merit consideration for closure based on one or more of these criteria. Consequently, it is  imperative that the Postal Service manage its facilities as efficiently and  cost-effectively as possible. Appendix II: Objectives, Scope, and Methodology

Our overall objectives were to identify the Postal Service’s efforts to  address three key facility challenges related to (1) capturing and  maintaining accurate facility data, (2) adequately maintaining postal  facilities, and (3) aligning access to retail services with customer needs. Specifically, this report identifies the Postal Service’s goals and actions for  managing each of these challenges and assesses its progress in  overcoming the challenges and, as applicable, in implementing leading  federal practices.
Why GAO Did This Study

Continued financial challenges and increased competition call for the U.S. Postal Service to manage its 34,000 facilities as efficiently and cost-effectively as possible. GAO and others have identified key facility management challenges, including the need to (1) capture and maintain accurate facility data, (2) adequately maintain facilities, and (3) align retail access with customer needs. This report assesses Postal Service efforts to overcome these challenges and implement leading federal practices. To conduct this study, GAO analyzed postal data and documents, visited 58 facilities, and interviewed postal officials.

What GAO Found

To address the challenge of capturing and maintaining accurate facility management data, the Postal Service developed the Facility Database, but the database does not conform to the Postal Service's goals or to leading federal practices; specifically, it does not include data needed to measure performance on managing facilities or have the capacity to track such data over time. Further, a database analysis by GAO revealed data reliability problems, including duplicative and contradictory data. In addition, major Postal Service departments do not use the database as a consolidated data source for managing postal facilities. The Postal Service has attempted to improve the database, but many problems remain. To address the challenge of maintaining its facilities, the Postal Service has begun assessing the condition of the facilities but has neither determined the extent of its maintenance projects nor strategically prioritized the projects. A Postal Service inspection of 651 randomly selected postal facilities revealed that two-thirds were in less than "acceptable" condition, but the Postal Service had not documented the full extent of its maintenance projects backlog. After the inspection, the Postal Service initiated a program to assess the condition of all of its facilities--a necessary first step to improving their condition. In addition, the Postal Service lacks the data needed to implement leading federal practices, such as considering a facility's importance and value when prioritizing its maintenance projects. Due to funding constraints, the Postal Service currently focuses exclusively on emergency and urgent repairs--at the expense of a less costly preventive maintenance approach. To address the challenge of aligning access to postal retail services with customer needs, the Postal Service has expanded access in underserved areas but has done less to address overserved areas. Leading federal practices identify criteria for "rightsizing" facility networks--such as considering facilities' importance and utilization--but the Postal Service does not consider these criteria. GAO's analysis shows wide variation in the number of postal retail facilities among comparable counties, and a number of facilities GAO visited appeared to merit consideration for closure based on one or more of the federal criteria. If the Postal Service begins collecting data that reflects criteria based on leading federal practices, it may be able to close facilities and adjust access to retail services according to customer needs.