Management Alert – Air Mail Not Moving as Assigned at the Los Angeles Terminal Handling Services

While conducting site visits at the Los Angeles Terminal Handling Services (THS) for our ongoing Air Mail Not Moving as Assigned audit, the OIG found significant opportunities to improve the Postal Service’s air carrier contract management. The purpose of this alert is to bring these issues to the Postal Service’s attention and make recommendations for immediate corrective action. The Postal Service’s air transportation network costs for fiscal year (FY) 2021 were about $3 billion, as of July 31, 2021. In FY 2020, costs totaled $3.5 billion, an increase of about $390 million (or 12.7 percent) over FY 2019. These costs consisted of contracted services from [redacted], commercial airlines (CAIR), [redacted], supplemental charters, and THS operations.