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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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: 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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OIG Report: Global Positioning System Trailer Visibility

Background The U.S. Postal Service has spent about $7.6 million since fiscal year (FY) 2010 on its Logistics Condition Reporting System (LCRS). The system was intended to collect and report Highway Contract Route (HCR) Global Positioning System (GPS) data and monitor HCR performance. Because of inaccurate data reporting and system compatibility issues the Postal Service…

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OIG Report: Consolidation of Mail for Dallas and New Jersey NDCs

Background Highway Contract Routes (HCR) are competitive fixed-price contracts the U.S. Postal Service awards to contractors to transport mail between post offices, network distribution centers (NDC), and other designated stops. In fiscal year (FY) 2016, the Postal Service spent about $3 billion for about 8,664 HCRs. The Postal Service uses 21 NDCs to increase operational…

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OIG: Is USPS Effectively Reporting Highway Contract Route Irregularities?

Project Title: HCR Irregularity Reporting Start Date: Tuesday, January 10, 2017 Estimated Report Release Date: July 2017 In fiscal year 2016, the Postal Service spent over $3 billion for almost 8,700 highway contract routes (HCRs). The Postal Service awards these contracts to transport mail between post offices and other designated stops. They are the largest…

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APWU Locals: Modifications to the 110 HCR Subcontracting Awards Must be Discussed at National Level

Web News Article #: 245-2016 11/22/2016 – According to correspondence between the Postal Service and APWU, all discussions to modify any of the 110 Highway Contract Route (HCR) subcontracting must be done at the National level. In the award summary, Arbitrator Shaym Das stated, “By agreement, the parties may substitute other route(s) to be converted…

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