Federal Manager's Daily Report

GAO testified at the hearing that implementing a number of these proposals could hit snags, including the need to overturn collective bargaining agreements to trim its workforce, and public resistance to closing so many facilities, as well as the potential for a decline in service leading to an even greater reduction in business which is already suffering from a permanent decline mail volume.

"The stark reality is that USPS’s business model is broken," GAO told the committee. It said in addition to a drop in volume, that the gap between revenues and expenses is growing and that "dramatic changes in cost structure" are needed.

That could include moving toward more of a private sector model. USPS told the committee that it needs the ability to operate more as a business, including in regard to "the way we provide products and services, allocate resources, configure our retail, delivery and mail processing networks and manage our workforce."