The United States Postal Service: Modernization, Budgeting and Corporate Partnerships
Matthew Bellittiere, MPA Project Proposal·
Background/Introduction
Advisor - Prof. Laurie Buonanno
Literature Review
The United States Postal Service (USPS) is the only federal
government entity that has constant contact with every corner of
the US and its citizens on a daily basis. Yet it is not often that
Americans stop to think about how the USPS reflects changes in
our expectations as to how governmental entities should operate
in the 21st Century. Indeed, the USPS has undergone
major changes over the last decade - transforming itself from its
traditional role of delivering letters and only a few parcels, to
delivering letters, many more parcels and a multitude of other
services. The USPS’s struggle to survive and adapt to the
contemporary delivery landscape can teach us much about how
traditional government “machine” bureaucracies adapt to the new
“hollow state” of private-public partnerships (P3s).
How does a
prototypical government bureaucracy transform itself?
The purpose of the study is to chart how the USPS has forged
partnerships with for-profit rival delivery companies and the nation’s
largest online retailer, and the implications these partnership hold for
the USPS’s future economic viability and the role of P3s in new public
governance. Can the USPS become a leaner, more flexible, and
more responsive to the delivery needs of postmodern America?
The old USPS
The USPS employs approximately 617,000 workers, making it the third-largest
civilian employer in the United States behind the federal government and Wal-Mart.
The USPS operates 31,000 post offices and locations in the U.S., and delivers
155 billion pieces of mail annually (USPS website).
The UPS is a “quasi-governmental agency” (supported by the government, but
managed privately). It is an independent establishment of the executive branch of
the US federal government, controlled by the Postmaster General and the Postal
Regulatory Commission (PRC), comprised of commissioners appointed by the
POTUS and confirmed by the US Senate. The literature on quasi-governmental
agencies is reviewed in the context of their characteristics and relationship with
Congress, the President, and its commissioners.
That the USPS is a quasi-governmental agency is particularly interesting to public
administrators because it represents an opportunity to study extensive government
control (president appointment and senatorial confirmation of the PRC and the
postmaster) coupled with the dictate to be managed as a private entity. Thus, the
USPS represents an opportunity to test the value of the New Public Management
(NPM) theory of public administration. Particularly important from the NPM
perspective is the fact that the USPS is constantly under fire by the US Congress
over its budgets. Budget projections, falling letter delivery numbers coupled with
increases in pension and healthcare costs are documented . The table, below,
shows (September 2014), USPS liabilities exceed assets by approximately $45
billion. The modernization of the USPS, has occurred because of the inability for
the USPS to stay profitable under a traditional view of public administration due to
rising costs associated with pension liabilities, an aging workforce that is reducing
work place efficiency, an aging USPS fleet of vehicles, and competition from for
profit delivery companies. The USPS has responded to criticisms of its “old
government bureaucratic ways” by forging partnerships with companies that need
its delivery services. Most interesting has been it partnership with Amazon (the
nation’s largest online retailer) and its rival delivery companies – FedEx and UPS.
Methodology
Sampling
Sampling is only relevant in this study insomuch as I plan to attempt to
conduct open-ended interviews with individuals at the USPS, Amazon,
UPS, and FedEx who are responsible for managing their partnerships
once I have completed the other aspects of my data collection.
Research Design
It is difficult to pinpoint a quantitative, qualitative, or a mix of both at thi
s
early stage of the process. My analysis will take place in phases as
follows:
Phase 1: Analyze the USPS’s budget in terms of the present and futur
e costs identified in the literature review (pension liabilities, aging fleet,
etc.)
Phase 2: Analyze USPS budget projections based on partnerships wit
h Amazon, UPS, and FedEx (heretofore, “partners”).
Phase 3: Analyze and map the contractual agreements between the
USPS and its partners based on secondary sources (USPS, etc.).
Phase 4: Interview USPS officials and partners with respect to the nat
ure of the P3. These will be semi-structured interviews designed to so
licit opinions as to how the partnerships are structured, ease of implem
entation (or lack thereof), and other information that can only be glean
ed through interviewing.
References
The new USPS?
Stevens, L. (2014). For FedEx and UPS, a Cheaper Route:
the Post Office, Article. Wall Street Journal - Eastern
Edition, pp. B1-B2.
Waxer, C. (2014). MODERNIZING THE Mail. (Cover story).
Computerworld Digital Magazine, 1(5), 12-19.
USPS (nd) “About USPS. United States Postal Service
website.
USPS (2015). https://about.usps.com/who-weare/financials/integrated-financial-plans/fy2015.pdf