In-Office Cost System Follow-up

The In-Office Cost System (IOCS) is the U.S. Postal Service’s primary probability sampling system used for estimating the cost of processing mail and parcels. The data collected from IOCS enables the Postal Service to allocate the labor costs from the handling of mail, parcels, and related activities performed by clerks, mail handlers, city carriers, and supervisors to all mail classes and rate categories. The Postal Service uses the data collected from IOCS to allocate about $21 billion per year in costs to mail products. The Postal Service uses the allocated costs to each mail category collected from IOCS to determine prices. Therefore, collecting consistent, accurate data is essential.