• Planned operational improvements and corresponding refinements within the current service standards will result in increased transportation and operational efficiency, negating the need to transfer some mail processing operations out of Reno.

• Previously committed $13.4 million USPS investment in Reno facility to move forward as part of 10-year “Delivering for America” plan to modernize the nation’s aged and neglected postal network.

• No anticipated employee impacts with the decision to keep these operations at the Reno facility.

RENO, NV – The United States Postal Service (USPS) announced today that the Reno Postal facility will continue certain local originating mail processing operations. This decision has been made possible due to the identification of enhanced efficiencies in proposed operational improvements, along with related refinements within the existing service standards. These improvements were outlined in a recent notice to the Postal Regulatory Commission (PRC) on August 22. This move follows an earlier USPS proposal to potentially transfer outgoing mail processing operations to the Sacramento Processing and Distribution Center (P&DC) in West Sacramento, CA starting in 2025.

In addition to preserving certain local originating processing operations, the Reno facility is set to undergo changes, backed by a previously announced USPS investment of $13.4 million, that will enhance its services, without affecting business mail entry, Post Office, station, and branch retail services. Once the facility is transformed into a Local Processing Center (LPC), it is expected to handle mailing and shipping of packages, manual letters, and flats. Moreover, the LPC is also projected to offer express services and accept bulk and permit mail, further enhancing its delivery services.

Proposed operational improvements and corresponding refinements within the current service standards will enable USPS to sustain certain local originating mail processing at Reno facility

On August 22, the USPS began the regulatory process with the PRC, proposing operational improvements and refinements within current service standards. These enhancements aim to strengthen service reliability, increase cost efficiency, and boost overall productivity. The changes, which would take effect after this year's Election and Peak Season, will allow certain local originating processing operations to remain in Reno. These proposed modifications are expected to result in annual savings of approximately $3 billion, mainly through a reduction in transportation costs.

Earlier this year, the Reno processing facility was part of the Mail Processing Facility Reviews. The main objective of these reviews was to find cost efficiencies, primarily through transportation savings. By implementing the changes proposed in the notice to the PRC, the Postal Service intends to achieve further operational efficiencies and optimizations. These would be in addition to transportation savings, but achieved through different strategies than those used in certain Mail Processing Facility Reviews.

If the regulatory process is successful, there will be no change to the location for cancelling certain originating mail in Reno. In simpler terms, outgoing single piece mail will continue to be processed at its current location.

No Anticipated Employee Impacts

The Postal Service initially anticipated staffing impacts due to the proposed move of originating operations to the Sacramento P&DC. However, with the decision to keep these operations at the Reno facility, there are no anticipated employee impacts. 

This remains consistent with the stance taken in April, where no career layoffs were part of the initiative. In fact, as part of its investment strategy in the Reno facility, the Postal Service is focusing on enhancing package processing and shipping capacity. This could potentially lead to increased plant activity and a future need for additional staffing support.

USPS to invest up to $13.4 million in Reno facility

As announced in April, the Postal Service will invest up to $13.4 million in the Reno LPC, which will result in expanded and streamlined package and mail processing and distribution capabilities for the facility. These investments include $8.4 million for modernization efforts and deferred maintenance. For example, these funds will be used for new workplace amenities for Postal Service employees such as new lighting and renovated bathrooms and breakrooms.

In addition, the Reno LPC will be co-located with a Sorting and Delivery Center (S&DC). These facilities will allow the Postal Service to provide faster and more reliable mail and package delivery over a greater geographic area. S&DCs will have upgraded sorting equipment, offer Same Day or Next Day delivery options, and provide better facilities for Postal Service employees.

S&DCs will be equipped with the necessary infrastructure to support the deployment of the Postal Service's new Battery Electric Vehicles (BEVs) and charging stations. In locations where BEVs will be used, the Postal Service will upgrade and develop the infrastructure required for their effective deployment. Based on the average deployment numbers at S&DCs, new vehicle investment in BEVs is around $5 million per site. The S&DC that will be co-located with the Reno LPC will have 219 delivery routes that are eligible to be serviced by BEVs.

The S&DC will also feature evolving USPS’s self-service tools and technology to give customers added services and new choices in how they ship and receive packages.

More details will be forthcoming following a Sept. 5 Postal Service pre-filing conference to discuss the proposal and gain stakeholder feedback in anticipation of a subsequent PRC filing seeking an Advisory Opinion from the Commission.

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