USPS OIG – Moving Mail by Rail

Background
The U.S. Postal Service launched a pilot program to transport mail by rail on July 14, 2020, under a contract with Contractor #1. On November 10, 2021, the Postal Service expanded rail service using a second contractor, Contractor #2. The intent of moving mail by rail is to reduce as many Highway Contract Route trips as possible and fully optimize the surface transportation network.
What We Did
Our objective was to evaluate how the Postal Service identifies opportunities for moving standard mail on intermodal transportation and monitors rail transportation network performance. To accomplish our objective, we conducted observations at the Los Angeles Network Distribution Center (NDC) and interviewed Postal Service management at the eight NDCs using rail service. Additionally, we reviewed contracts and performance data for the scope period of July 14, 2020, to June 30, 2022

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