U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products Page: 29 of 37
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Appendix III: Examples of Services USPS
Currently Performs on a Discretionary Basis
for Federal Agencies
performed for federal
No. (first year of service) Description
1 USPS accepts passport Pursuant to an interagency agreement between USPS and the State Department and authorities
applications for the U.S. granted under 39 U.S.C. 411 and 31 U.S.C. 686. USPS is authorized to accept passport
Department of State applications on behalf of the Department. Under the terms of the most recent agreement (2000),
(State Department) trained USPS personnel, among other things, review each passport application for completeness,
(1974) record pertinent information about the identification the applicant used, collect fees, and send the
completed application to the State Department. USPS retains a portion ($25) of the collected fees in
the form of an execution fee. In fiscal year 2011, USPS accepted approximately 5.6 million passport
applications in over 6,300 post offices nationwide. According to USPS, the applications generated
net income of $43 million for the period. By using USPS's extensive network of post offices, the
agreement is intended to provide passport applicants with more convenient access to passport
acceptance services than the State Department could provide alone, particularly in remote U.S.
areas. According to the interagency agreement, either party may terminate the agreement, without
liability, with 180 days advance notification to the other party.
2 USPS leases excess Through various interagency agreements and authorities granted under 39 U.S.C. 401, 410, and
space to other federal 411, USPS is authorized to enter into non-sale lease (tenancy) agreements with government
agencies agencies for such things as excess parking, office space, and roof space for antennae towers. In
(late 1980s/early 1990s) fiscal year 2011, USPS received about $24 million in revenue for 91 non-sale lease (tenancy)
agreements with federal agencies. Most of USPS's leases (tenancy agreements) for excess parking
and office space are with the General Services Administration, while USPS's roof space is typically
leased to law enforcement agencies. According to USPS, because its tenancy agreements generate
revenue for space that USPS is not using, they help maximize the value of USPS's real estate
holdings. Note: USPS also enters into non-sale lease agreements with private, nongovernmental
parties. However, as discussed in appendix I, those agreements are carried out pursuant to a
grandfathered nonpostal service.
3 USPS processes equal Through various interagency agreements and under authority granted by 39 U.S.C. 411, in 2006,
employment opportunity USPS began conducting EEO investigations on behalf of other federal agencies. According to USPS
(EEO) complaints for officials, USPS initiated this service to generate additional revenue. In addition, USPS believed that
other federal agencies given its extensive experience in this area, it could use its existing contractor workforce to reduce the
(2006) costs and improve the timeliness and quality of other agencies' EEO complaints processing. Since
2006, 17 federal agencies have entered into interagency agreements with USPS for this purpose. In
fiscal year 2011, USPS's National EEO Investigative Service Office completed 255 investigations for
9 federal agencies that generated about $558,000 in net income. According to USPS, interagency
agreements can be terminated at any time by the mutual agreement of the parties.
4 USPS collects vacant Pursuant to authorities granted under 39 U.S.C. 411 and a 4-year interagency agreement with HUD,
address data for the USPS agreed to provide HUD with data on vacant U.S. residential and business addresses. According
Department of Housing to the agencies' most recent agreement (September 2011), HUD intends to use this information to
and Urban Development forecast neighborhood changes, assess neighborhood needs, and measure the performance of several
(HUD) of its programs. HUD agreed to pay USPS $30,000 in 2011 and has options to purchase additional
(2005) data over a 4-year period for a total cost of up to $160,000. The parties specified that the agreement
may be terminated for no reason or any reason by written notice to the other party.
Source: GAO analysis of USPS and PRC documents and related reports.
aln addition to services that USPS performs on a discretionary basis for federal agencies, USPS is
required-either by law or executive order-to perform numerous services on behalf of federal agencies.
For example, the Migratory Bird Hunting and Conservation Stamp Act requires USPS to print, issue, and
sell duck stamps (that serve as hunting licenses) for the U.S. Fish and Wildlife Service. Pub. L. No. 73-
124, 48 Stat. 451 (Mar. 16, 1934). Through executive order, USPS also is directed to deliver medicines
to individuals in the event of a large scale biological attack. Exec. Order No. 13527, 75 Fed. Reg. 737
(Jan. 6, 2010)
GAO-13-216 U.S. Postal Service
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United States. Government Accountability Office. U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products, report, January 15, 2013; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc298921/m1/29/: accessed December 17, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.