Delays, bad planning in program for faster mail risk $89.8m in postal savings

Poor planning and repeated delays in a program aimed at speedier processing of bulk mail could jeopardize nearly $90 million in potential cost savings for the United States Postal Service.

Problems in the Postal Service’s “Seamless Acceptance” program resulted in inaccurate data and customer service issues, according to a postal service inspector general report. Postal officials first began implementing the program in 2006.

The program is now being used in a limited form by 29 mailers, but 288 more are preparing to do so.

Continued delays could cost the Postal Service $89.8 million in savings, according to the inspector general, but Postal Service officials disagreed, saying they have a comprehensive plan in place now to fix the program and that no savings are at risk.

However, “data for tracking and monitoring [seamless acceptance] is not accurate or reliable …,” investigators reported. For example, the mail’s weight recorded by the automated system differed from the actual weight, which could affect the prices mailers are charged.

The Postal Service recently delayed a crucial update to its systems that would help fix data issues. “Such delays, unfortunately, are not new to implementation,” the inspector general said.

The inspector general reported in 2009 that the program was “at risk of project delays and cost overruns from insufficient project management.”

Because of such issues, mailers must be in constant communication with the Postal Service.

“More than one-third of the mailers we spoke to stated the … help desk is not helpful, the calls get forwarded to the contractor for resolution and the staff does not have the knowledge to resolve complex issues,” according to the inspector general.

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