Commission Calls for Outsourcing at Postal Service A presidential commission recommends that the Postal Service contract out more of its work, especially those functions that are not directly related to delivering mail. The recommendations by the President’s Commission on the U.S. Postal Service were part of a blueprint for a broad overhaul of the organization’s governance and operations. Most of the proposed changes would require congressional approval. Among the “non-core” functions that should be turned over to contractors are real-estate management, vehicle maintenance and management of information technology systems, the commission said in its report released July 31. The group also said the service should consider outsourcing some mail-handling functions rather than investing in new technology. “Those Postal Service functions that can be performed better and at lower cost by the private sector should be outsourced to the private sector,” the commission said. The commission said the Postal Service has not taken full advantage of its exemption from most federal procurement laws. “Official explanations revolve around claims of intense public pressure to abide by the more rigorous and costly standards imposed on other Federal agencies,” the report said. “It ...is inappropriate to apply regulations and statutes aimed at traditional agencies to a Federal entity required to finance its own multi-billion-dollar operations.” “The Postal Service spent nearly $12.4 billion in 2002, purchasing everything from supplies and equipment, to rent and fuel, to construction and mail transport services,” the commission said. “It owes ratepayers one of the most efficient and sophisticated procurement efforts in the country today.” With $67 billion in annual revenue, the Postal Service is the eleventh largest U.S. enterprise by revenue and the second biggest employer. The commission said the Postal Service should concentrate on delivering mail and end its diversification into e-mail and other electronic services. The commission said the e-commerce ventures have been “disappointing,” adding, “These efforts also have drained time and resources that could have been spent improving traditional postal services.” The commission’s recommendations drew fire from postal employees’ unions, which are wary of losing jobs. The report urged that the Postal Service be given more authority to close small local post offices, an idea that is not popular in Congress.