Federal Reports

Introduction

This management alert presents the issues the U.S. Postal Service Office of Inspector General (OIG) identified during the Effectiveness of Package Verification Solutions audit (Project Number 25-130). Our objective is to provide immediate notification of these issues. 

Background

In August 2017, the U.S. Postal Service launched the Automated Package Verification (APV) system to identify insufficient postage for some package volume. The system compares shippers’ reported package weights and measurements with actuals captured on postal processing equipment, charging any additional postage due and refunding overpayments (see Figure 1 for an example of package processing equipment). In 2018, the Postal Service invested $22.6 million to expand APV capabilities to improve revenue protection by evaluating every package that is processed on plant equipment. Since it was introduced, APV has increased Postal Service postage collection by $1.1 billion.

Due to constraints on the existing fiber network, in May 2017, the TVA Board of Directors approved the Strategic Fiber Initiative (SFI) with a budget of $300 million to expand TVA’s fiber capacity by 3,500 miles over the course of ten years on 31 prioritized routes.  In addition, TVA planned to lease surplus fiber to external entities to help offset a portion of the operational costs. As of January 2026, the 31 routes that were originally scheduled for fiber installation had been reduced to 19 routes and mileage reduced from 3,500 to approximately 1,900 miles to stay within the $300 million budget.  Due to the decrease in mileage, we initiated an evaluation of the SFI program to identify the cause(s) for the decrease in scope for the strategic fiber program.

We determined the original budget for the SFI program contained some flawed assumptions that resulted in an underestimated cost per mile.  To stay within the approved $300 million budget, TVA reduced the scope of the program.  We reviewed documentation that identified some of the flawed assumptions that contributed to cost increases (resulting in scope decreases), including: (1) issues with wood poles, (2) limited use of helicopter to install the fiber, (3) increased use of contractor labor, (4) environmental requirements, and (5) outage availability. Additionally, the program has not generated the amount of revenue from leasing excess fiber capacity that was anticipated.  At the request of the Project Review Board, program personnel identified lessons learned to be applied to future programs of similar size and duration. 

Why We Did This Report

We conducted this evaluation to determine the extent to which Drinking Water State Revolving Fund Infrastructure Investment and Jobs Act supplemental funds are used for projects that improve resilience to physical and cyber threats and hazards.

Summary of Findings

The EPA has opportunities to improve its oversight of physical or cyber resilience projects. Such oversight would help the Agency meet and track strategic goals and requirements to safeguard water and wastewater critical infrastructure.