Postal Service Defends Five-Day Delivery Schedule and Cost Savings
USPS challenges Postal Regulatory Commission analysis, stands by its $3.1 billion savings estimate.
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The $1.4 billion discrepancy between the respective estimates results from:
- the Commission's unwillingness to recognize about $760 million in savings from increased city carrier productivity and efficiency under a five-day schedule;
- the Commission's failure to account for more than $260 million in highway transportation and mail processing economies associated with one less day of street delivery; and
- the Commission's summary dismissal of the unrefuted testimony of market research experts to reach its conclusion that the Postal Service estimate of annual revenue loss resulting from the change was understated by $386 million.
On the variances between the agency's cost savings estimates, the Postal Service report questions the PRC assumption that "little, if any, efficiencies and increases in productivity would be realized in certain city carrier activities by delivering the same volume Monday through Friday instead of Monday through Saturday." The PRC revenue loss estimate "is contradicted by the overwhelming weight of expert testimony ... [and] falls short of the requirement that it be based on substantial record evidence."
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