Summary: Automation at the Waterloo, Iowa, mail processing facility did not yield financial savings as the Postal Service had planned, nor did it improve productivity and delivery service. After the consolidation of mail operations in Mason City and Waterloo, mail processing workhours declined as expected in Mason City, but the workhour increase in Waterloo was larger than anticipated, and the combined hours for both facilities rose sharply. Despite the introduction of automation equipment, labor productivity declined. Transportation costs, instead of decreasing as planned, increased because of equipment upgrades and route changes. Although local overnight service in Mason City was maintained, some locations were no longer scheduled to receive overnight mail delivery, and the percentage of mail delivered on time to other overnight locations fell. Contrary to Postal Service guidelines, officials have not reviews the consolidations to determine whether their goals were attained. GAO believes that the Service should do such reviews to determine if consolidations in rural areas benefit the Service and its customers.
