Background

This report presents the results of our self-initiated audit of manual parcel processing operations at the Brooklyn Processing and Distribution Center (P&DC) in Brooklyn, NY. We conducted this audit to provide U.S. Postal Service management with timely information on operational risks at the Brooklyn P&DC.

The Brooklyn P&DC is in the Triboro District of the Northeast Area. During fiscal year (FY) 2019, it manually processed 80 million letters, 10.6 million flats, and 807,000 parcels. Mail is processed manually when its dimensions or address quality prevent it from being processed on mail processing equipment; however, it is much more cost effective to process mail on mail processing equipment. In FY 2019, average productivity for parcels processed on mail processing equipment was 278 parcels per hour while the average productivity for manually processed parcels was 74 parcels per hour.

We selected the Brooklyn P&DC for review based on our analysis of manual parcel productivity as measured by the Management Operating Data System (MODS). The Postal Service uses MODS data to plan workloads, project workhours and mail volume, track mail processing activities, evaluate the efficiency of facilities, and estimate staffing requirements. In addition to its operational uses, the Postal Service uses MODS workhour data to calculate totals for many of the cost pools within the Clerks and Mail Handlers Cost Segment. Postal Service management and the Postal Regulatory Commission rely on accurate and precise product cost estimates to set postal prices and to reliably determine whether revenue for products and mail classes cover attributable costs. The Brooklyn P&DC’s FY 2019 manual parcel productivity of 16 mailpieces per hour was significantly lower than the national average productivity of 74 mailpieces per hour.

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Source: USPS Office of Inspector General