Upcoming Audit Work

The U.S. Postal Service is redesigning its surface transportation network to reduce costs by moving more mail volume in fewer “middle mile” trips. To achieve this, the Postal Service implemented Regional Transfer Hubs (RTHs) where mail volume is consolidated before dispatch to the network and incoming volume is sorted for regional distribution. RTHs enable the Postal Service to increase trailer utilization, a measurement of how full trailers are, reducing the number of trips needed to move mail in the network.
Our objective is to evaluate the implementation and effectiveness of the Postal Service's Regional Transfer Hub initiative.

Improved or Not? 

During FY 2023 and 2024, the Field Operations Review Team (FORT) completed audits of various mail processing facilities throughout the country, evaluating their efficiency of operations. We had findings with delayed mail, scan compliance, and late and canceled trips at almost every facility. We made recommendations, or in some cases, management addressed the findings before we issued the report. Our objective will be to evaluate trends in service and operational performance at previously audited mail processing facilities to determine potential areas for improvement. 

The Postal Service relies on major mailers and consolidators who generate approximately $15.9 billion of the Postal Service’s revenue through marketing and other large scale mailings. Major mailers rely on PostalOne!, a complex system designed for business mailers that interfaces with 45 other Postal Service systems. PostalOne! allows business customers to begin the process of entering mail and allows for electronic access, documentation, business mail management, and payment. It is an internal and external facing site that provides automated scheduling services for drop shipment mailings, electronic documentation, postage statements, simplified mail acceptance, and verification and payment processes. The objective of this audit is to determine whether the Postal Service appropriately implemented and communicated changes to PostalOne!.

As part of its 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. As of November 2024, the Postal Service rolled out 83 S&DCs that encompassed 9,497 routes and expects to develop 36 more in 2025 that would encompass 3,313 routes. Our objective is to determine if the Postal Service evaluated and created routes accurately at the S&DCs. If not, estimate the cost impacts.

As part of their Delivering for America plan, the Postal Service is investing $40 billion for network modernization, based around Regional Processing and Distribution Centers (RPDCs), Local Processing Centers (LPCs), and Sorting and Distribution Centers (SDCs). Overall, the Postal Service will establish 60 RPDCs to consolidate mail processing operations and create fewer points in the processing and transportation networks. Each RPDC processes mail and packages originating in its service area and has one or more LPCs associated with it. This audit will focus on the network transformation and consolidation of operations at Indianapolis, IN RPDC.