Postal Service Is Consolidating Contracts The Postal Service will continue to move to consolidated national and regional contracts as part of an aggressive cost-cutting plan, said Craig Partridge, manager of Supply Chain Management Strategies. He cited two national repair and maintenance contracts that were awarded last year, replacing work that had been contracted at the local or district level. The Postal Service’s transformation plan, released last year, calls for $5 billion in cost savings by 2006. With the growing popularity of e-mail, first-class mail volume is falling for the first time in history, Partridge said. First class accounts for about two-thirds of postal revenues. Speaking at a conference sponsored by Eagle Eye Publishing in Falls Church, VA, Jan. 13, Partridge said his office has approved 184 cost-cutting projects this month. He said no amount of savings is too small to be overlooked, even in an organization that spends $3.7 billion a year on supplies, services and equipment. As it looks for economies of scale in purchasing, Partridge insisted the Postal Service is still welcoming small businesses. “We want to bring small businesses, new businesses into our supplier base to bring innovation (and) encourage new ideas,” he said.