U.S. Postal Service (USPS) delivery performance standards and results, which are central to its mission of providing universal postal service, have been a long-standing concern for mailers and Congress. Standards are essential to set realistic expectations for delivery performance and organize activities accordingly. Timely and reliable reporting of results is essential for management, over-sight, and accountability purposes. GAO was asked to assess (1) USPS's delivery performance standards for timely mail delivery, (2) delivery performance information that USPS collects and reports on timely mail delivery, and (3) progress made to improve delivery performance information.

Reports have been issued on the USPS strategy for realigning its mail processing network and improving delivery performance info. These reports recommended that the USPS: (1) strengthen planning and the overall integration of its realignment efforts, and enhance accountability by establishing measurable targets and evaluating results; (2) improve delivery service standards and performance measures; and (3) improve communication with stakeholders by improving public notice, engagement, and transparency. This testimony discusses USPS¿s actions toward: (1) strengthening network realignment planning and accountability; (2) improving delivery performance info.; and (3) improving communication with stakeholders. Charts and tables.

Since 2001 comprehensive postal reform legislation was needed to address the USPS¿s unsustainable business model, which assumed that increasing mail vol. would cover rising costs & mitigate rate increases. This outdated model limited its flexibility & incentives needed to realize sufficient cost savings to offset rising costs, declining First-Class Mail vol., unfunded obligations, & an expanding delivery network. This limitation threatened the USPS¿s ability to achieve its mission of providing affordable, high-quality universal postal services on a self-financing basis. This report focuses on: why the USPS was recently removed from a high-risk list; the USPS¿s financial condition in FY2007; & the opportunities & challenges facing the USPS. Charts & tables.