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USPS published its Second-Year Progress Report on Delivering for America (DFA), which outlines the organization’s ten-year plan to restore fiscal sustainability, attain service excellence, and expand seven-day package delivery while retaining universal six-day mail delivery.
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“As we enter the third year of our Delivering for America plan, there is a new energy and vibrancy at the U.S. Postal Service,” said Postmaster General and Chief Executive Officer Louis DeJoy.
“As I travel the nation meeting with the great men and women of the Postal Service, it is clear the investments we are making are paying off – and it is showing through our improved delivery for the American people and our business customers.
“The progress we’ve made in the last two years demonstrates that our plan is realistic and achievable. We’re just getting started.”
When the Delivering for America plan was released in March 2021, it aimed at transforming the Postal Service from a financially and operationally troubled organization to a self-sustaining and top-performing one.
In the two years that followed, USPS has made significant strides in implementing key DFA strategies and initiatives.
Although there is still much room for improvement in the Postal Service’s financial and operational performance, USPS says the achievements made through DFA illustrate the possibility of a sustainable future and the organization’s dedication to providing exceptional service to the nation.
USPS DFA Highlights
Aligned for Operational Excellence: USPS is committed to meeting the public’s expectations by becoming a high-performing organization. To achieve this, the Executive Leadership Team and organizational structure are now centered on realistic goals and held accountable at a level comparable to leading private industry organizations.
Positioned to Financially Break Even Over the Next 10 Years, Despite Inflation: Within only two years of the 10-year plan’s implementation, estimated losses for the decade have decreased by over 50%, dropping from $160 billion to $70 billion. This substantial achievement brings USPS closer to its objective of breaking even by 2030. Despite unanticipated inflation challenges, the Postal Service still projects that it can achieve break-even operations by the end of DFA’s 10-year timeline.
Fostering Service Excellence for the American People: Years of declining reliability have been successfully reversed. USPS is nearing its primary goal of achieving a 95% on-time performance rate for all types of mail. In fiscal year 2022, every market-dominant product recorded enhanced service performance compared to FY2021. During FY22, 95.6% of packages were delivered punctually, with an average of 99.9% of packages delivered in under three days.
Converting 125,000 Employees to Full-Time Positions: The Postal Service’s focus on stabilizing the workforce has been unwavering, and since October 2020, USPS has successfully converted 125,000 pre-career employees to full-time career employees. This includes 50,000 conversions completed between April 2022 and March 2023.
Modernizing Delivery and Processing Network: Nearly $7.6 billion of the self-funded investment budget of $40 billion allocated for the plan has been dedicated to building a modernized postal network, and work on this initiative is currently in progress. This includes opening 6 new sorting and delivery centers and constructing new regional processing and distribution centers.
Increased Daily Package Processing Capacity to 60 Million: Over the last two years, USPS has procured and installed 249 new package processing machines across the country. These machines, in conjunction with enhancements in operational precision, have raised its daily packaging capacity processing to 60 million.
Updating and Electrifying the Nation’s Largest and Oldest Federal Fleet: Upgrading the mail delivery fleet is a crucial component of DFA. USPS pledged to purchase the most environmentally sustainable vehicles for its entire ground fleet from the outset, considering financial and operational factors. The Postal Service also recognized that the electrification of its fleet could be accelerated as the strategy evolved, technology advanced, and its financial situation improved.
Additional milestones in the first two years of Delivering for America include:
- Enactment of the Postal Service Reform Act (April 2022)
- Implementation of new service standards for select Market Dominant and Competitive products
- Judicious implementation of new pricing authority
- New offerings to expand package delivery, including USPS Connect
As the Delivering for America plan enters its third year, the Postal Service remains dedicated to enhancing service reliability for both the American public and business clients.
The Postal Service continues to revamp the outdated and aging postal network nationwide, ensuring operational stability, and introducing new competitive product offerings for its customers.
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