NSRMCA: New Conversion Shows LRO Investment Risks
Last week, the United States Postal Service and the American Postal Workers Union, AFL-CIO (APWU) announced an agreement establishing a new career bargaining unit driver position and the conversion of highway contract routes (HCR) in the Oklahoma City area to Postal Vehicle Service (PVS). The conversion specifically impacts a LRO site and two suppliers serving that site.
PVS conversions are significant industry events that the National Star Route Mail Contractors Association (NSRMCA) takes seriously. They deprive transportation suppliers of a contracting opportunity with the United States Postal Service. Nor have they guaranteed better service or lower cost of service. Conversions to PVS are rarely, if ever, returned to the surface transportation network for solicitation.
For decades, as far back as 1845, the United States Postal Service has relied upon and expanded its use of surface transportation suppliers to facilitate the shipment of mail and packages between postal facilities throughout the nation. It has done so because contracting with transportation suppliers ensures reliable, secure, and economical transportation, particularly compared to that which can be provided within Postal Service operations. That remains true today.
Because conversions deprive transportation suppliers of business opportunities with the Postal Service, NSRMCA generally opposes all PVS conversions. But NSRMCA also acknowledges that conversions may help achieve a more efficient surface transportation network and can be economically competitive in certain, limited circumstances.
Even then, PVS conversions are only appropriate when pursued consistent with established Postal Service practices and in a transparent, accountable manner so that suppliers can plan accordingly.
The Oklahoma City conversion presents significant concerns to NSRMCA. Those concerns are compounded because this conversion is being implemented as a pilot for possible expansion to additional locations. At this time, NSRMCA is unable to predict potential future conversion locations or the timeline for those conversions, and the Postal Service has not been transparent about this conversion effort.
NSRMCA is engaging with Postal Service leadership about this conversion and any other conversions that may be occurring throughout the surface transportation network. Until NSRMCA is able to provide additional updates, NSRMCA recommends that all surface transportation suppliers cautiously approach new LRO solicitations and investments in current LRO operations.
Please advise NSRMCA of any developments or information you receive about potential PVS conversions. In this environment, even rumors are worthy of serious consideration. As transportation suppliers to the United States Postal Service, it is important that we are responsive to the needs of our mutual client. But it is also important that changes to Postal Service operations are pursued in an accountable, transparent, and fair manner consistent with the Postal Service’s obligation as a federal agency.
Contact:
Greg Reed,
NSRMCA Executive Director
GregReed@nsrmca.org
About NSRMCA
The National Star Route Mail Contractors Association is the trade association for transportation companies that contract with the U.S. Postal Service to deliver the mail. Our members include small businesses, large interstate trucking companies and leading third-party logistics firms. Collectively, they represent the backbone of the Postal Service’s surface transportation network, ensuring efficient delivery to 163 million locations six days a week.