Federal Manager's Daily Report

Recent changes to the Postal Service’s purchasing regulations

are promising but require ombudsman revisions and continued

oversight, the Government Accountability Office has said.

It said the agency is revoking and superseding its former

purchasing regulations, handbooks, circulars, manuals, and

guidelines and replacing them with streamlined regulations

and interim internal guidance. Further, USPS is establishing

new provisions for entering business relationships with

suppliers — including the process for declining to accept

or consider proposals — and is creating a new process for

resolving disputes with suppliers or potential suppliers,

including the establishment of an ombudsman.

The policy has received a mixed reception, leaving some

stakeholders questioning the justification for the changes

and concerned that they might not be able to appeal USPS

decisions, according to GAO-06-190.

It said stakeholders have also questioned how postal

officials would be held accountable for the fairness of

purchasing decisions and its results, given this additional

flexibility and discretion.

USPS said the changes would yield a more flexible, efficient

and businesslike purchasing system, but GAO cited

inconsistencies and concerns that warrant continued oversight.

It said that while the agency’s new regulations and draft

internal guidance generally followed key principles of

reform practices of leading organizations, a new ombudsman

position does not.

Further, GAO said it remains concerned about how USPS would

implement the purchasing changes because of the delayed

issuance of USPS financial guidance, and questioned whether

USPS would be able to become more efficient with the new

flexibilities while ensuring the fair and consistent

treatment of suppliers.