The USPS Office of Inspector General (OIG) published the latest evaluation of the Postal Service’s Delivering for America (DFA) plan. The 10-year DFA plan was introduced in 2021 under Postmaster General Louis DeJoy (who recently stepped down and was replaced by FedEx board member David Steiner).
The USPS Inspector General’s latest report examined the impact of DFA on four areas: service, financial impact, sustainability efforts, and labor management, and it also reviewed USPS’s cost-reduction efforts in its transportation portfolio.
In a report summary (“Concluding Observations”), the USPS OIG wrote the following:
“While there has been progress, and the Postal Service realized $1.3 billion in overall transportation savings in FY 2024, the planning and early implementation of this transformation has resulted in negative service impacts to communities, and efforts to address those impacts are critical to ensuring support for further implementation of the plan.
“And while the Postal Service experienced a significant loss in FY 2024, Q1 of FY 2025 saw a controllable income of $968 million and a net income of $144 million. As the focus on the financial challenges facing the Postal Service is increasing, continued progress in this area is critical. We will continue our oversight work to provide transparency, insights, and actionable solutions to promote a viable Postal Service.”
“Negative service impacts to communities” was no doubt a reference to major disruptions in service in areas in Texas, Virginia, and Georgia in 2023 and 2024, to the point that in April of 2024, eBay advised sellers there were indications the entire country was experiencing delays, with the delays also gaining attention from national media outlets and members of Congress.
The full USPS OIG report contains details and a response by USPS management to the findings.
At least some of last year’s postal service disruptions were related to the USPS’s new sorting and delivery centers (S&DCs), and this month, the Postal Service is going on a PR offensive by giving tours to local news media and employees where it is showing off its new, high-speed sorting machines.
USPS has opened 96 sorting and delivery centers since 2022 as part of the Delivering for America plan’s $40 billion investment in infrastructure to transform the organization’s network, it said. And it has plans to open 300 more S&DCs during the next few years, with new centers scheduled to open in the coming months in Georgia, California, Nevada and Arizona.
So 1st quarter they net $144 million, why the 7% rate increase in July
They need to start charging for Priority Mail and other free supplies due to massive abuse.
Those that post videos on YouTube, and other media outlets, demonstrating, and even bragging about, misusing supplies should be prosecuted and made examples of.
Stop wasting millions on commercials and print ads.
eBay’s postal discounts need to be reviewed as eBay has used these to commit massive consumer fraud. eBay should be given a deadline upon which to meet USPS rules or have their commercial rates terminated. Chief among these are eBay FVF fraud. eBay should be forced to only charge FVF on any overages on shipping rates by comparing what was charged the customer to what a label cost. FVF on all shipping has resulted in fewer sales on eBay and fewer packages being shipped through USPS and other carriers all to line the pockets of eBay.
eBay should also be made to alter how they FVF on sales tax as they are clearly engaging in profiteering on the collection of sales tax, which leads to higher costs and less items sold.