Background
As part of its Delivering for America plan, the U.S. Postal Service plans to create a modernized network based around Regional Processing and Distribution Centers (RPDC), local processing centers and sorting and delivery centers. RPDCs merge mail processing into a central facility within a region to reduce transportation and improve service reliability. In July 2023, the Postal Service began consolidating operations into the Boise facility and in October 2024, officially recognized it as the fifth RPDC in its network. 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
The objective of this audit was to assess the operational impacts related to the launch of the RPDC and identify successes, opportunities, and lessons learned. We conducted observations of the Boise, ID, RPDC and analyzed supporting data.
What We Found
Overall, the Boise RPDC implementation was a success, and the facility did not experience a significant decrease in service performance. The Postal Service learned from prior implementations, phased in operations, and did not implement multiple network changes at the same time.
However, we found compliance issues, excess costs, and potential transportation savings opportunities at Boise RPDC. Specifically, the consolidation of operations into the Boise RPDC required service standard changes that were not communicated to stakeholders. In addition, expected cost savings were not achieved, and decreases in mail processing efficiency and increases in overtime resulted in over $1.6 million in questioned costs. Further, the Postal Service has not performed a cost comparison for insourcing contracted transportation at the Boise RPDC; rather the facility is 100 percent reliant on contractor transportation.
Recommendations and Management’s Comments
We made three recommendations to address tracking and cost savings and to improve efficiency. Management agreed with recommendations 1 and 2 and disagreed with recommendation 3. 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 1 and 2 as corrective actions should resolve the issues identified in the report. We will pursue management’s disagreement with recommendation 3 through the formal audit resolution process.
