Author: Bhargava, Jay (WAS-WSW)
Last saved by: Venable, Cindy C - Washington, DC
Company: Interpublic Group

Mail Processing Facility Review
Notice to Improve Mail Operations and Service 

Dakota Central Processing & Distribution Center 

September 22, 2026

On November 8, 2023, it was announced that we were beginning a Mail Processing Facility Review (MPFR) at the Dakota Central Processing and Distribution Center (P&DC) in Huron, SD, to see if it made sense to transfer some mail operations into the Fargo P&DC in Fargo, ND.  The results of the facility review supported keeping the Dakota Central facility open and modernized as a Local Processing Center (LPC).  Additionally, the business case supported transferring mail processing outgoing operations to the Fargo P&DC.  Currently, a majority of mail and packages are destined outside the Huron area to the rest of the world.

Then on February 21, 2025, it was announced that certain local originating processing operations would remain at the Dakota Central P&DC.  This decision to leave those operations in Dakota Central was made possible due to a proposed operational strategy aimed at increasing efficiency, improving service quality, and saving USPS an additional $3 billion per-year nationwide.  This proposed strategy was outlined in its request for an advisory opinion filed with the Postal Regulatory Commission.  The significant savings generated by this proposed operational strategy would enable the Postal Service to absorb the cost of continuing to provide local cancellation service in Dakota Central.  The Postal Service made these determinations based on efficiencies gained by operational improvements and service standard refinements separate from the MPFR process.

Over the last year, the Postal Service has been reviewing its processing and logistics operations at the three South Dakota processing plants in Sioux Falls, Huron (Dakota Central), and Rapid City  The assessment resulted in a planned change to resolve unintended service issues resulting from the three plants flowing into three different out-of-state processing hubs.  Therefore, the approved MPFR dated March 26, 2024, will not be implemented. 

On September 22, 2026, it was announced that significant upgrades will occur at the Sioux Falls P&DC which will result in quicker intrastate mail and package service for many South Dakota customers.  The Postal Service plans to upgrade the Sioux Falls plant from a P&DC to a Regional Processing and Distribution Center (RPDC) beginning January 1, 2027. 

As part of this upgrade, the Sioux Falls plant will become a major node in a newly modernized network handling most originating and destinating mail and packages for South Dakota and allowing faster inter-plant connections to other major hubs nationwide.  The change will also allow for quicker service standards within the state, potentially reducing travel time for a letter by one to two days.  Travel time may vary depending on the drop-off location, time and method of entry, and other factors.

This decision aligns the Dakota Central P&DC as an integral part of the Sioux Falls’ RPDC transformation to improve customer service in the South Dakota area.  

We are pleased that we can make these network improvements for our South Dakota customers, and we believe they will see noticeable changes.