Procurement spending by the U.S. Postal Service declined slightly in 2011, but capital spending was anemic, according to the agency’s recently released Form 10-K report. Capital expenditures experienced a 15% drop from 2010 levels. This comes on top of a 24% decline in capital spending a year ago. Transportation spending was once again the leading procurement category, totaling $6,389 million — an increase of $511 million, or 8.7%, compared to 2010. More expensive fuel accounted for much of this increase, as diesel fuel prices rose 26.6% from a year ago.
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“Postal Reform Act” would also reform USPS contracting
By David P. Hendel on
Posted in Compliance, Postal Service Contracting
Saving the Postal Service also requires reforming its contracting policies, according to a bill introduced by Rep. Issa (R-Calif.) on June 23, 2011. Prompted by the Postal Service’s decision to stop paying into the federal retirement system and $27 billion in projected losses over three years, the bill would enact sweeping reforms. The “Postal Reform Act of 2011” would create two separate oversight bodies that would have broad, receivership-type authority to impose cost-cutting measures on the agency. While curing postal deficits is the primary goal, the bill specifically addresses postal procurement practices and would impact postal contracting in significant ways. Read on for the details.