USPS OIG Report: Highway Contract Route (HCR) Optimization Cost Savings

Objective Our objective was to evaluate the Postal Service’s Highway Contract Route (HCR) Optimization Cost Savings methodology and the accuracy of reported savings for fiscal year (FY) 2017. The Postal Service implemented the Zero Base HCR initiative in FY 2014 (renamed HCR Optimization in FY 2017) to reduce surface transportation costs by identifying, adjusting, and…

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USPS OIG Report: Highway Contract Route Fuel Price Index Program Effectiveness

Objective Our objective was to determine the effectiveness of the March 2017 Highway Contract Route (HCR) baseline fuel price per gallon (ppg) procedural guidance for all HCR contracts awarded or renewed between June 1 and October 1, 2017. The U.S. Postal Service uses supplier-operated HCR to transport mail and equipment between plants, post offices, or…

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USPS OIG Report: Consolidation of Mail for the Atlanta NDC

Objective Our objective was to assess the efficiency of the U.S. Postal Service’s transportation consolidations of mail (loading, unloading, and trailer utilization) for long-distance Highway Contract Routes (HCR) at the Atlanta Network Distribution Center (NDC). Consolidation Deconsolidation Facility (CDF) contractors provide bedloading and recontainerization services for the Postal Service at 19 NDCs. Bedloading is when…

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OIG: Highway Contract Route Irregularity Reporting – Chicago NDC

Objective Our objective was to assess the effectiveness of the U.S. Postal Service’s irregularity reporting process for highway contract routes (HCR) at the Chicago Network Distribution Center (NDC). Each NDC reports HCR irregularities using the Yard Management System (YMS). The YMS automatically creates a Postal Service (PS) Form 5500, Contract Route Irregularity Report, when an…

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USPS OIG Report: Consolidation of Mail for Chicago and San Francisco NDCs

Objective Our objective was to assess the efficiency of the U.S. Postal Service’s transportation consolidation of mail (loading, unloading, and trailer utilization) for long-haul Highway Contract Routes (HCR) for the Chicago and San Francisco Network Distribution Centers (NDC). Consolidation Deconsolidation Facility (CDF) contractors provide bedloading and recontainerization services for the Postal Service at 19 NDCs….

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USPS OIG Report: HCR Contracting Practices and Conflicts of Interest

Objective Our objective was to determine if the U.S. Postal Service’s Highway Contract Route (HCR) contracting practices, including avoidance of conflicts of interest, are in compliance with Postal Service policies and procedures and in line with industry practices. What the OIG Found We found that the Postal Service’s HCR contracting practices were not always in…

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USPS OIG Report: Highway Contract Route Irregularity Reporting – Jacksonville NDC

Background In fiscal year (FY) 2016, the U.S. Postal Service spent over $3 billion for about 8,700 highway contract route (HCR) contracts. The Postal Service uses these competitive fixed-price contracts to transport mail between post offices, network distribution centers (NDC), and other designated stops. A contract irregularity occurs when an HCR contractor does not satisfactorily…

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Postal Fleet Services rolls out SmartDrive video system

By Aaron Huff – July 25, 2017 SmartDrive Systems announced that Postal Fleet Services, Inc., a major mail hauler primarily servicing the United States Postal Service, has adopted the SmartDrive video-based safety system following a competitive review and pilot program. In piloting the SmartDrive program in its St. Louis, MO service area, Postal Fleet Services…

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