Background
As part of its 10-year strategic Delivering for America plan, the U.S. Postal Service is redesigning its processing network and plans to invest $40 billion to create a modernized network based around regional processing and distribution centers (RPDC). The Atlanta RPDC is a one million square foot facility that opened in February 2024, consolidating operations from multiple facilities in the Atlanta region. The Postal Service approved an over $254 million investment to build out and set up the Atlanta RPDC and expects net savings of $2.6 billion over 30 years from consolidating regional operations. Efficient and effective RPDCs are critical to the success of the Postal Service’s Delivering for America plan and its goal of being financially self-sustaining.
What We Did
Our objective was to evaluate operations and service performance at the Atlanta RPDC and follow up on corrective actions taken by the Postal Service to improve performance. We conducted observations at the Atlanta RPDC in December 2024 and March 2025.
What We Found
The Postal Service improved service performance at the Atlanta RPDC; however, performance is still below nationwide averages and well below goals. Operations run smoothly at times, but at other times the facility cannot handle the volume of mail and trailers it receives and remains one adverse event away from gridlock. The Postal Service was forced to expand operations into a nearby annex to help receive mail and trailers for the RPDC, and as a result, it is unlikely it will achieve expected savings in fiscal years 2026 and 2027. Additionally, the facility continues to experience challenges related to the layout and space needs, management oversight and workplace culture, and transportation. These issues contributed to over $16.1 million in questioned costs. If these issues were addressed, the Postal Service would further improve operations and service, as well as reduce costs.
Recommendations and Management’s Comments
We made eight recommendations to address the issues identified in the report. Postal Service management agreed with five recommendations and disagreed with three. Management’s comments and our evaluation are at the end of each finding and recommendation. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to recommendations 3, 4, 6, 7, and 8. Corrective actions should resolve the issues identified in the report. Management disagreed with recommendations 1, 2, and 5, and we will pursue the recommendations further through the formal audit resolution process.
