September 29, 2010
The Postal Inspector General (IG) has analyzed the tax payer money being spent by the US Post Office (USPO) and has determined that in excess of $800 million per year is being wasted on poorly written contracts, financial waste, excessive perks and benefits. This is occuring even though the agency is deeply losing money and requires added dollars to be provided from the federal government, over and above what has been allocated in the budget for the organization. Senator Susan Collins of Maine released the report from the IG which was exploring how the organization could achieve greater efficiences and cost efficiences. The three key areas included 1. Field Office Structure 2. Purchasing Policies 3. Employee Compensation.
One of the more disturbing findings was that the IG discovered that the Post Offices regularly award contracts with former employees, many of which never go out for competing bids from other potentially lower cost providers. Similarly, the organization regularly hires back as consultants former employees at nearly two times their employed rates, many of whom are earning retirement benefits in addition to this compensation.
The IG's report includes a variety of cost savings measures, many of which include consolidating regional offices and laying off unnecessary personnel to help accomplish this government which is awash in red ink to get back in the black. Unfortunately, the organizations lack the will power to effect these much needed changes and to serve the American people versus serving the employees and executives of the USPS themselves.
To see more on this article, go to: http://federalsoup.com/articles/2010/09/29/ig-uncovers-800-million-in-us...