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Reviews electronic-commerce initiatives (ECI) of the USPS. Some have questioned the merits of USPS' development of non-postal products and services, including those that are e-commerce related. The report describes USPS': (1) ECI that have been implemented or are being developed, (2) goals and strategies for the ECI, (3) processes for approving these ECI, and (4) expected performance and results to date related to ECI. Discusses areas where USPS can improve its management of its ECI. Describes USPS' views on how major federal laws and regulations apply to its ECI and identifies legal issues that have been raised concerning its ECI.
The Postal Accountability and Enhancement Act of 2006 required an evaluation of strategies and options for reforms of the U.S. Postal Service (USPS). USPS¿s business model is to fulfill its mission through self-supporting, businesslike operations; however, USPS has experienced increasing difficulties. Due to volume declines, losses, a cash shortage, and rising debt, the USPS was added to a high-risk list in July 2009. The objectives of this report were to assess: (1) the viability of USPS¿s business model; (2) strategies and options to address challenges to its business model; and (3) actions Congress and USPS need to take to facilitate progress toward financial viability. Includes recommendations. Charts and tables.
The U.S. Postal Service's (USPS) financial condition and outlook deteriorated significantly during FY 2009. USPS was not able to cut costs fast enough to offset declining mail vol. and revenues resulting from the economic downturn and changing mail use. USPS would not be able to make the $5.4 billion payment to prefund postal retiree health benefits that was due by the end of the year. This testimony: (1) updates USPS's financial condition and outlook; (2) describes changes made by the Postal Account. and Enhancement Act of 2006 that provided USPS with greater flexibility to generate revenues; (3) outlines USPS's revenue-generation actions and results using this flexibility; and (4) discusses options to generate increased revenues in the future.