Background
Customers rely on Priority Mail Express (PME), the U.S. Postal Service’s fastest product, to ship important, time-sensitive documents and packages. PME comes with a money-back guarantee for nextday or two-day delivery. If a PME mailpiece does not arrive by the guaranteed date, customers have 30 days from the mailing date to request a refund. In fiscal year (FY) 2024, the Postal Service’s goal was to deliver [redacted] percent of PME on time. However, the Michigan 1 District’s service performance score was [redacted] percent, well below the goal, impacting customer satisfaction and Postal Service revenue.
What We Did
Our objective was to evaluate the efficiency and service performance of the Postal Service’s PME product in the Michigan 1 District. We judgmentally selected 10 Postal Service facilities, observed operations, and interviewed headquarters, district, and local management to identify challenges with PME in the Michigan 1 District. We also analyzed data related to the service performance issues we identified, including postage refunds. The Postal Service requested an Advisory Opinion from the Postal Regulatory Commission on October 4, 2024, regarding, among other things, its PME service standards. Our fieldwork was completed prior to this filing; thus, we did not review it as part of this report.
What We Found
The Michigan 1 District did not always promptly deliver PME destined for customers in the district. In addition, PME that originated in the district was not consistently processed to allow for next-day or two-day delivery. Further, mail processing and delivery operations did not communicate effectively to ensure PME could be processed, transported, and delivered by the guaranteed delivery date. As a result, the Postal Service paid Michigan 1 District postage refunds of about $570,000 in FY 2024 and faced an average potential refundable revenue of about $41,000 every 30 days.
Recommendations and Management’s Comments
We made six recommendations to address the issues identified in the report. Postal Service management agreed to all recommendations. 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 all recommendations, as corrective action should resolve the issues identified in the report.
