The U.S. Postal Service Office of Inspector General (OIG) has uncovered significant deficiencies in the management of its Contract Delivery Services (CDS), impacting mail security, carrier safety, and operational efficiency. The audit identified issues ranging from carriers lacking security clearances and engaging in unsafe driving practices to $1.9 million in annual incorrect payments to suppliers.
The OIG's review of CDS operations at ten delivery units and a survey of 213 administrative officials revealed that some CDS mail carriers did not possess required English language skills, hindering communication with Postal Service staff and customers. Furthermore, there were no requirements for accident reporting, and headquarters' limited oversight, coupled with manual processes, restricted visibility into local operations and minimized performance accountability.
In fiscal years 2024 and 2025, the Postal Service made approximately $1.9 million in incorrect extra trip payments annually to CDS suppliers due to the use of incorrect rates. The OIG issued ten recommendations to address these safety, security, and oversight issues. Postal Service management agreed with all recommendations, with the OIG considering comments responsive to most, expecting corrective actions to resolve the identified problems.