Office of Inspector General Report: Oshkosh, WI Processing and Distribution Facility Consolidation

WHY THE OIG DID THE AUDIT:
We performed this review as a result of a congressional request on the consolidation of mail processing operations from Oshkosh, WI Processing and Distribution Facility (P&DF) into the Green Bay, WI Processing and Distribution Center (P&DC). The objectives were to determine whether a business case exists to support the consolidation and to assess compliance with established area mail processing (AMP) guidelines.

WHAT THE OIG FOUND:

Although the consolidation would result in cost savings, adequate facility and machine capacity does not exist at the Green Bay P&DC to process the additional mail volume and service could be negatively impacted. Our analysis also indicated that: (1) No career employees will lose their jobs at either location although there may be some reassignments; (2) Oshkosh P&DF is more efficient and processes its mail volumes at a lower cost than Green Bay P&DC; (3) Mail processing cost savings were overestimated, but significant savings still should be achieved; and (4) Some AMP guidelines were not followed, but had no impact on the business case.

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