Federal Daily News
Postal regulators detail shortcomings of USPS closure plan
The Postal Regulatory Commission last month said that the U.S. Postal Service plan targeting more than 3,600 post offices and other retail facilities for possible closure lacks the data and analysis necessary to effectively bolster the efficiency of the USPS retail network.
“The primary commission finding is that notwithstanding its name, the Retail Access Optimization Initiative is not designed to optimize the retail network,” stated the PRC’s Dec. 23 advisory opinion.
“The commission was unanimous in expressing its concern that the Postal Service’s plan did not and could not, because of lack of data and analysis, determine the facilities most likely to serve the greatest number, reduce the greatest costs, or enhance the potential for growth or stability in the system,” PRC Chairman Ruth Goldway said in a statement. “We agree that the Postal Service access network should be right-sized, but found that the RAOI was not the proper approach to meet that goal.”
The PRC opinion recommended that USPS use “modern optimization tools and techniques” to boost retail revenues while fulfilling the organization’s statutory service obligations.
Although USPS announced early last month that it intended to proceed with plan, on Dec. 13 it subsequently issued a five-month moratorium on closing post offices and mail processing facilities after congressional lawmakers asked for more time to address the USPS financial crisis.