The United States Postal Service’s (USPS) bottom line has been hit by the federal government itself as numerous agencies have increased their contracts with publicly traded companies instead of the Postal Service for their mailing and distribution services, the Washington Free Beacon has found.
The federal government spends hundreds of millions of dollars each year for these services, and the lion’s share of contracts has gone to United Parcel Service (UPS).
An analysis of records shows the government awarded contracts solely issued for mailing and distribution worth nearly four times as much to UPS as it did to USPS in the last three-and-a-half years.
USASpending.gov shows 25 federal agencies have contracted with UPS instead of the Postal Service, resulting in $122 million in revenue for UPS from 2010 to 2013 for mailing and distribution.
By comparison, the Postal Service received $29.3 million.
A review of contracts from federal agencies with UPS and another publicly traded company, Federal Express, shows that the government continues to award more contracts to them than it does USPS.
So basically the government would rather use anyone to do its shipping and mailing than a quasi-arm of the government.