OIG: HCR Payments Mostly Effective, Could Be Improved

While USPS’s payments to Highway Contract Route (HCR) suppliers are mostly correct, it could stand to improve controls over contract management. 

Specifically, improvement opportunities were seen in canceled trips, terminated contracts and proof of delivery (POD) verification, read a Dec. 12 report from the USPS Office of Inspector General (OIG). 

“These issues highlight the need for stronger controls and automated updates to reduce unnecessary expenses and ensure accurate payments,” the document stated. 

In its evaluation, OIG found that $3 million was incorrectly paid by USPS for canceled trips. Also, around $818,000 was paid out in fiscal years 2023 and 2024 across 1,700 trips on terminated contracts, while 8 percent of trips paid during fiscal 2024 “were not supported by reliable POD data,” according to the report. 

For the terminated contracts issue, OIG found that the trips were occasionally not removed from the system after being terminated, so they continued to be paid out. USPS said in a reply that it is aware of the issue and working on a solution. It will also work to recover the incorrectly paid money from those suppliers. 

For the audit, OIG looked at HCR contracts in CLEAR and payment data from April 2022 to March 2024.