Postal Service loses out on millions

ATLANTA --More flak for the U.S. Postal Service, as it continues to battle for financial survival. While lawmakers wrestle with the agency over cutbacks to Saturday mail delivery, it appears they are not putting their money where their mouths are.

The Washington Guardian is reporting that the Postal Service missed out on millions of dollars worth of government business last year.

Federal agencies spent $337 million on shipping; the financially troubled Postal Service got just $4.8 million of that- only 2% of the business.

"That is surprising, because you would think that'd be the first place that they'd go, to to try to work with the United States Postal Service and boost them up," said Cathy Young, of Atlanta's Intown Business Center.

However, Young, who is in the business of shipping, understands why the Postal Service may be missing out.

While the Post Office has made great strides in making money on flat rate boxes, when it comes to larger and heavier packages, it loses out.

"You know when the size of the package matters, UPS and FedEx, are, can be cheaper than going through the United States Postal Service," Young said.

The Washington Guardian's Brad Kelbfeld says the Post Office, unlike private companies, didn't get into the game early enough in bidding for federal agencies' shipping business.

"One thing the Inspector General found, is that the Post Office doesn't have a large enough staff of dedicated sales people who specialize in selling to government agencies,"Kelbfeld said.


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