USPS OIG: Management of HCR Contractor Failures at Columbus P&DC

Background This report presents the results of our self-initiated audit to assess the management of Highway Contract Route (HCR) irregularities due to contractor failure at the Columbus Processing & Distribution Center (P&DC), in Columbus, OH. Late trips occur when various conditions cause a delay in arrival or departure beyond scheduled times. Late trip reason codes…

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USPS OIG Report: Transportation Network Optimization and Service Performance

Objective Our objective was to assess opportunities to optimize the Postal Service’s transportation network and meet service performance goals. Transportation is a core part of Postal Service operations, combining Postal Service-owned and operated assets with contractor operations. Every day a team of transportation and logistics professionals manage an average flow of over 390 million mailpieces…

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USPS OIG Report: Dynamic Route Optimization and Cost Savings Initiative 

Objective Our objective was to evaluate the cost savings for implementing the Postal Service’s Dynamic Route Optimization (DRO) initiative. The Postal Service began implementing the initiative in fiscal year (FY) 2016. The initiative allows for morning Highway Contract Routes (HCR) to change from a fixed-price contract with set routes (static) to a rate per mile…

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DOL Investigation Finds Mail Hauler Failed to Pay Employees Prevailing Wages and Fringe Benefits

U.S. Department of Labor News Release April 22, 2019 ATLANTA, GA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Postal Fleet Services Inc. – based in Saint Augustine, Florida – will pay $329,057 in back wages and benefits to 53 employees for violating requirements of the Fair Labor…

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APWU: Salmon Co. Drivers in El Paso Unanimously Ratify CBA

04/22/2019 – Drivers from the newly unionized Salmon Co. in El Paso, TX unanimously ratified the terms of their first Collective Bargaining Agreement. These APWU new members received most of the terms of the negotiated Salmon contract for the Dallas Area Local. Due to the organizing efforts and continued support of Texoma Local representatives Sonny…

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USPS OIG Report: Highway Contract Routes – Extra Trips in Mid-Carolinas District

Objective Our objective was to assess the effectiveness of the Postal Service’s extra trip process for Highway Contract Routes (HCRs) in the Mid-Carolinas District. The Postal Service uses contracted supplier operated routes, or HCRs, to transport mail and equipment between plants, post offices, or other designated points that receive or dispatch mail. An extra trip…

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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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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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