The United States Postal Service has been stressed lately with the high-cost of fuel, as you may or may not know the USPS has the largest fleet of vehicles in the United States. The usps certified mail must cut costs and the snail mail is still taking a hit from the Internet and email. Fewer and fewer people write letters anymore or send anyone anything. Many folks do not even check their mail ever day anymore; they just are not expecting anything in there that is so urgent that they must attend to it immediately.
Most of the income for the USPS comes from the junk mail, flyers and coupon type mail, along with special deliveries, signed receipts and certified postal mail. But that income even with the recent rise in stamps is not sufficient enough for the USPS to modernize and stay on top of all the needs and expenditures.
Is outsourcing the answer for the USPS:
Perhaps an interesting report to read on this topic is one produced by the GAO (government accounting office), titled; “U.S. Postal Service: Data Needed to Assess the Effectiveness of Outsourcing,” [GAO-08-787 July 24, 2008].
In this report the GAO stated that; “When evaluating outsourcing proposals, the Service must consider five factors–public interest, cost, efficiency, availability of equipment, and qualification of employees–and determine whether outsourcing will have a “significant impact” on work performed by postal employees covered by collective bargaining agreements. If so, it must compare the costs of performing proposed work with postal employees and with a contractor, notify the affected union that it is considering outsourcing, and consider union input before making a decision.”
Interestingly enough, these five factors are somewhat similar to those in the private sector and it is not as if the USPS has not outsourced the prior, they have been outsourcing since its formation. Maybe you might remember the first mail planes or how the US Mail helped save the US Airlines during tough economic times in the past, since the airlines were carrying the mail in the bellies of their plane to help pay the bills.
Outsourcing has been a win/win for the post office in the past, and we should expect more of the same in the future. Please consider this case study and information when discussing quasi-government agencies and outsourcing.
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