Throughout the nation’s history, the post office has been a key component  in the provision of postal services. Differences Exist in How USPS Provides Delivery and Retail Services

Providing mail delivery and access to retail postal services is central to  USPS’s mission and role. Differences exist, however, in how USPS  provides these services, particularly in where, when, and how customers  receive the mail and have access to the postal network. These differences  have always existed and have evolved with changes in technology,  transportation, and communications. Delivery and retail decisions are  made primarily by local staff (i.e., district employees and local  postmasters), with overarching guidance provided by national USPS  policies and procedures. These differences (1) exist in  terms of what types of retail options customers have access to and where  these retail options are located and (2) are based on cost and customer  service determinations made by local USPS officials. USPS has  taken actions, and is planning future actions, to deal with these challenges  and improve the efficiency and effectiveness of its delivery and retail  networks. (2) Move stamp-only transactions away from the post office window. It is unclear how post offices in rural areas may  be affected by this initiative, because, as USPS stated in its Infrastructure  and Workforce Rationalization Plan to Congress, “the savings from closing  small post offices are minimal, since the potential savings in personnel and  office rent are often more than offset by the additional cost of rural delivery  service needed in lieu of post office box delivery.”  Another approach,  recommended by the President’s Commission, would be for USPS to  optimize its retail network by assessing its “low-activity” post offices to  determine if they are needed to ensure the fulfillment of universal service. Customer Satisfaction and Issues

Data reflect that customers are generally satisfied with the services  provided by USPS. Although it is reported that overall customer satisfaction is high, when  customers do raise concerns, many relate to inconsistencies in delivery  services and changes in access to retail services. On the retail side, the issues raised most frequently were concerns  about potential post office closings or relocations. In regards to its delivery network, USPS appropriations  acts have included provisions on 6-day-a-week delivery and rural mail  service, and there is strong stakeholder opposition to cuts in the frequency  or quality of postal services. We previously discussed these principles, and they included  targeting underserved areas, particularly in high-growth areas, and  replacing redundant, low-value access points with alternative access  methods. Conclusions

USPS’s retail optimization strategy could be an opportunity for a “win-win”  outcome for both USPS and its customers, including those in rural areas, in  that USPS could reduce its costs while at the same time improving access  for its customers. Improved transparency  and accountability mechanisms are also needed to raise stakeholder  confidence that decisions will be made in a fair, rational, and fact-based  manner. Recommendation for Executive Action

To facilitate USPS’s progress in implementing its planned actions aimed at  improving efficiency in its postal network while increasing customer  service, we recommend that the Postmaster General provide improved  transparency and communication to inform Congress and other  stakeholders of the actions it plans to take regarding its retail optimization  strategy, including (1) the criteria USPS will use to make decisions related  to changing its retail network; (2) the process it will use to communicate  with postal stakeholders throughout the decision-making process; (3) the  impact on customers, including those in rural areas; and (4) the time  frames for implementing all phases of its retail optimization initiative. Postal Service’s (USPS) policies, procedures, and practices for providing  rural delivery services, and how they compare with those in urban areas,  we discussed USPS’s basis for providing delivery and retail services, the  legal framework under which these decisions are made, and the process  used to carry out these decisions with USPS officials.
Why GAO Did This Study

A key element of the ongoing postal reform deliberations before Congress is the U.S. Postal Service's (USPS) ability to carry out its mission of providing universal mail delivery and retail services at reasonable rates. Many are concerned that USPS's mission is at risk in the current operating environment of increasing competition and decreasing mail volumes. Preserving universal service, particularly in rural areas, is a goal of postal reform. GAO was asked to discuss (1) how USPS provides universal mail delivery services and access to postal services in both rural and urban areas; (2) what changes USPS is making or plans to make related to providing postal services, including changes that may affect rural areas; and (3) what are the major issues that have been raised related to how USPS provides postal services.

What GAO Found

USPS provides its customers, regardless of where they live, with services that include mail delivery at no charge and access to retail services. However, differences exist in how, when, and where USPS provides these services. These differences have always existed due to the nation's geographic diversity and changes in technology, transportation, and communications. Universal postal service is not defined by law, but appropriations legislation requires 6-day mail delivery and prohibits USPS from closing small, rural post offices. Delivery and retail decisions are made primarily by local USPS officials with overarching guidance provided by national policies and procedures. Local decisions are based on cost and service factors, including the number and location of deliveries, quality of roads, employee safety, and mail volume. USPS has taken actions, and is planning future actions, to improve the efficiency of its delivery and retail networks. Overall, customers in urban and rural areas will probably not see significant changes in delivery services since most changes are focused on operational improvements. On the retail side, USPS plans to provide more cost-effective and convenient service by developing new, low-cost alternatives; moving stamp-only transactions away from post office counters; and optimizing its retail network. USPS's retail optimization involves tailoring services to communities' needs and replacing "redundant, low-value access points with alternative access methods." It remains unclear how customers in rural areas will be affected by these retail initiatives since most are planned for high-growth, high-density areas. Generally, postal customers are satisfied with the services provided to them. The issues that have raised the greatest concerns from customers include inconsistent mail delivery and the threat of post office closings or reductions in post office hours. Also, concerns have been raised about USPS's limited communication regarding its planned changes to its networks. USPS's retail optimization could be an opportunity for USPS to reduce its costs while improving customer service. However, USPS needs to provide additional transparency and accountability mechanisms to better communicate its retail optimization plans and raise stakeholders' confidence that decisions will be made in a fair, rational, and fact-based manner.