Assessment of Changes to Air Transportation Contracts

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Date Issued

Monday, June 23, 2025

Submitting OIG

U.S. Postal Service OIG

Agencies Reviewed/Investigated

U.S. Postal Service

Report Number

25-022-R25

Report Description

The U.S. Postal Service transitioned its primary air cargo contract from one carrier to another on September 30, 2024, to further align its transportation strategy with anticipated Delivering for America network changes. This new agreement, valued at approximately $10 billion for the contracting period, is expected to streamline operations by consolidating volumes and reducing overall transportation costs. During the first quarter of fiscal year (FY) 2025, the Postal Service assigned 7 percent less volume to the air network and reduced spending by 43 percent compared to FY 2024.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	Yes	$0	$0
Determine whether the Air Carrier Performance report should be used as the official record of the new carrier's service performance and update performance reporting, as appropriate, to ensure stakeholders have timely and accurate performance data.
2	Yes	$0	$0
Implement additional accountability measures for retail units with clerks who fail retail acceptance testing more than once.
3	Yes	$0	$0
Require retail and delivery units to certify that all current hazardous material signage and counter guides be displayed and accessible.
4	Yes	$0	$0
Require surface feeder sites to report out on daily scan performance with a plan for improving scan performance.
5	Yes	$0	$0
Develop a process to monitor and evaluate scanning performance to determine if required daily scans are performed at the surface feeder sites.