Background
As part of the Postal Service’s Delivering for America plan, the Postal Service is redesigning its network of nearly 19,000 delivery units to reduce inefficient operations and costs. The Postal Service has identified key markets where it can aggregate several delivery units into fewer, larger, sorting and delivery centers (S&DCs) that are centrally located. The Postal Service stated that the creation of S&DCs will reduce transportation and mail handling costs, provide customers with additional services, standardize operations, and improve building and operating conditions for employees.
Over 400 S&DCs are planned to deploy in the next few years. To evaluate how service performance changed after implementation of an S&DC, we judgmentally selected the Binghamton, NY, Main Post Office for review. The Binghamton S&DC will absorb delivery operations for 10 other smaller post offices and have 150 routes, serving 17 ZIP Codes, once fully implemented. Consistent mail service throughout these transitions is imperative to meeting customer expectations and preserving the Postal Service brand.
What We Did
Our objective was to evaluate service performance before and after implementation of the Binghamton, NY, S&DC. To evaluate service performance before and after conversion, we conducted a statistical sample test of mailpieces sent and delivered within the Binghamton S&DC service area.
What We Found
Service performance in Binghamton, NY, and surrounding areas remained largely unchanged after implementation of the Binghamton NY, S&DC. Additionally, the Postal Service enacted several improvements and best practices from prior S&DC conversions that assisted in a smooth S&DC transition and minimal disruption to mail service. However, we found that Post Office Box mail was being delivered after the expected delivery time. Additionally, with the spoke office’s mail flowing through the S&DC, it caused confusion for clerks sorting mail and for customers on where to pick up packages when carriers left attempted mail delivery notifications.
Recommendations and Management’s Comments
We made one recommendation related to service performance stability and successes and two recommendations related to management oversight at the Binghamton S&DC.
Management agreed with all three recommendations, and the Office of Inspector General (OIG) considers management’s comments responsive, as corrective actions should resolve the issues identified in the report. The Postal Service’s comments and our evaluation are at the end of each finding and recommendation.
