Chapter 4 Our Operations

Mail Transport Equipment

Mail transport equipment (MTE) is the term given to sacks, trays, pallets, and wheeled containers that contain mail as it moves within or between facilities. The Mail Transport Equipment Service Center (MTESC) is an integrated network of 23 facilities for managing the MTE inventory, overseeing repair, storage, and distribution to internal and external customers. MTESC processes over 70,000 orders annually, serving 2,300 postal sites and large-volume mailers. In 2008, the Postal Service closed the leased warehouses that had been used to augment the MTESC, achieving a savings of $5.4 million.

Multiple efforts are underway to improve MTE — improving its performance and durability while reducing cost and any negative environmental impact. There is an ongoing effort to standardize MTE inventory. Instead of sending empty flat tubs to the MTESC for redistribution, plants will recycle them within their facility to reduce re-handling, a change expected to save up to $12 million annually. Use of a new lighter weight plastic pallet will further reduce cost. A “pallet round-up” program helped recover 57,000 pallets, for a savings of $1.1 million. A “closed-loop” pallet inventory system is now in development, along with a new Web ordering system to be tested in 2009.

Facilities

The Postal Service oversees 34,175 properties nationwide, totaling more than 325.5 million square feet. In 2008, approval for facility projects over $25 million rests with the Board of Governors. Design and construction of major processing plants are managed at Headquarters. Approval for projects under $25 million is established by the Postmaster General following review by the Postal Service’s Capital Investment Committee. Most of the Postal Service Facilities program work — planning, leasing, purchasing, designing, and construction — is performed by its field offices.

Real Estate Inventory


Inventory

End of Year

Total owned facilities

8,546

Total owned interior square feet

219,575,108

Total owned land in square feet

912,229,651

Total leased facilities

25,272

Total leased interior square feet

103,210,608

Total GSA/other government facilities

357

Total GSA/other government interior square feet

2,781,409

Realty Asset Management

Realty Asset Management manages the disposition of real property that has been declared excess to operational requirements. Realty Asset managers generate revenue by selling surplus property and leasing, or subleasing, excess space. In 2008, the Postal Service recognized $71.2 million in gains from sale of postal-owned buildings and land.

Projects

Completed
in 2008
Ongoing

New construction, major renovations, and expansions less than $25 million

29

316

New construction, major renovations, and expansions greater than $25 million

2

8

Building purchases

23

99

New lease construction

9

181

Other lease actions (alternate quarters, new leases, and lease renewals)

4,491

4,049

Expense repair and alteration projects

3,471

2,178

Capital repair and alteration projects

5,170

22,211

Delivery and Pickup

Delivery is the Postal Service’s largest operations function, accounting for approximately 45 percent of salary and benefit expenses. Despite an increase of 1.2 million delivery points, there were 9.5 million fewer delivery workhours due to effective growth management, increased use of automation, standardization of best practices, improved productivities, and complement controls.

Growth Management

The Growth Management Tool helps standardize planning for the addition of new delivery points. New growth was predominantly served through lower-cost means of delivery. Walking and “park-and-loop” delivery points declined, while curbline, cluster box, and centralized deliveries increased. Growth in lower-cost Rural delivery accounted for more than one-half of all new delivery points. The table below shows the number and growth of delivery points by type at the close of 2008.

Delivery Points by Type of Delivery

Type of Delivery

End of Year

Change from FY07

City

87,285,380

+402,904

Rural

39,092,100

 +709,134

Post Office box service

20,226,485

+42,032

Highway Contract Route

2,588,321

+45,694

Total

149,192,286

1,199,764

Delivery Productivity Improvement

Improved office and street delivery productivities are keys to increasing delivery efficiency. Using automated mail sorting equipment to prepare mail for delivery improves office productivity. Street productivity is improved by more efficient lines of travel and modes of delivery.