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Forward Thinking and Cost Controls: The United States Postal Service

John Edgar, Manager of the Corporate IT Portfolios for the United States Postal Service (USPS) spoke at an GovWin Federal Breakfast earlier this month and discussed some key challenges and objectives that the USPS is currently facing. He began his presentation by announcing that the Postal Service has been voted the most trusted Government agency for the last five years. Mr. Edgar then outlined the agency's plan to generate more revenue and increase efficiency.

According to Edgar, the financial condition of the USPS has been deteriorating over the last several months. Mail volume has been decreasing, and it's estimated that $2 billion dollars has been lost after the First Quarter of Fiscal Year 2009. This assessment was also echoed in an audit report released by the GAO on March 25, 2009.

Currently the USPS needs to concentrate on:

  • Reducing costs and increasing revenue to offset volume declines
  • Maintaining legal requirements, which include Sarbanes-Oxley
  • Providing technology and enhanced information to managers in order to help them make better decisions
  • Automate and streamline processes to eliminate manual operations
  • Modernize technology (Intelligent Mail Barcode System)

Edgar then stated the USPS's major current objectives:

  • Providing consistent data for corporate reporting and analysis
  • Integrating data across functional organizations
  • Driving business based analytics
  • Implementing a self service reporting model
  • Providing a historical repository of key corporate data
  • Sorting mail at minimal costs

GovWin is tracking the development of the USPS' major initiatives and cost control measures through the following opportunities:

  • Enterprise Technology Services: GovWin Opportunity 54372
  • Telecommunications WAN Services: GovWin Opportunity 54324
  • Modernization Software: GovWin Opportunity 54373
  • Next Generation Mail Processing Technologies: GovWin Opportunity 52170
  • Automate Road Test: GovWin Opportunity 45283

GovWin's Take:

The USPS needs to consolidate efforts and create more efficiency within the agency in order to avoid potential layoffs, the closing of various postal facilities, and even the rumored elimination of mail delivery one day a week in order to reduce costs. Over the next few years the primary focus for the USPS will be on their current business situation to meet the need for optimal organizational structure and the right technical capabilities. This situation provides an opportunity for vendors with expertise in business process engineering, IT infrastructure consolidation, and other cost management processes, to work with the Postal Service to modernize their systems and processes. The USPS wants to provide user friendly technology to their end user, while taking costs and efficiency into consideration.

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