In October 2023, the U.S. Postal Service deployed a major change to operations when it began piloting its Local Transportation Optimization (LTO) initiative. The initiative was designed to reduce the number of transportation trips to and from select post offices and increase the amount of mail transported on each trip. In addition, mail collected at optimized post offices remained there until the next day, delaying its entry into sorting operations. As of January 2025, the Postal Service had implemented LTO across 17 regions, including 56 post offices in the New Orleans region. The Postal Service has since expanded the LTO pilot program to a nationwide initiative, renaming it to Regional Transportation Optimization, and adjusted service standards. Implementing potential cost saving initiatives that result in mail taking longer to reach customers increases the risk that customers find quicker and more reliable alternatives.
Report File
Date Issued
Submitting OIG
U.S. Postal Service OIG
Agencies Reviewed/Investigated
U.S. Postal Service
Report Number
25-057-R25
Report Description
Report Type
Audit
Agency Wide
Yes
Number of Recommendations
5
Questioned Costs
$0
Funds for Better Use
$0
Report updated under NDAA 5274
No
Open Recommendations
This report has 3 open recommendations.
| Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
|---|---|---|---|---|---|
| 1 | Yes | $0 | $0 | ||
| Develop a formal contingency plan to mitigate service impacts during major, known disruptions in operations, such as Mardi Gras. | |||||
| 2 | Yes | $0 | $0 | ||
| Develop and implement, when needed, a localized retention and succession plan to ensure leadership and operational continuity. | |||||
| 3 | Yes | $0 | $0 | ||
| Take appropriate steps to bring all post offices into compliance with the Depart Post Office scan policy. | |||||
