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Balancing PMG Steiner's Delivering for America Plan with a Stronger, Smarter CDS Supplier Network

As USPS continues moving forward under PMG Steiner’s Delivering for America (DFA) plan, it is clear that the future of the CDS network will depend on a balanced approach that supports both operational efficiency and supplier stability.

There is no question that larger, well-established suppliers can provide important advantages in the right situations. They can offer broader coverage, stronger backup capacity, greater flexibility during service disruptions, and fewer administrative burdens for USPS through contract consolidation. In areas where scale truly improves efficiency, those advantages can support DFA’s goals of controlling cost, improving consistency, and strengthening network reliability.

At the same time, small and mid-sized CDS suppliers remain a vital part of the Postal Service delivery network. Many of these suppliers operate rural, specialized, and lower-density routes with strong local knowledge, dependable service, and lean operating structures that make them highly cost effective. In many cases, a smaller compliant supplier is not a weakness in the network, but a strength. Preserving those suppliers helps maintain competition, protects service in hard-to-cover areas, and reduces the long-term risk of over-dependence on a limited number of large operators.

For that reason, the strongest path forward is not a blanket move toward consolidation. The better model is a performance-based hybrid approach: retain and support compliant, reliable, and cost-effective suppliers of all sizes; use larger suppliers where scale creates real operational value; and apply consistent standards across the board for performance, compliance, safety, insurance, and service dependability.

Under that kind of structure, the suppliers most at risk would not be small suppliers simply because they are small. The suppliers most likely to be phased out would be those that are consistently non-compliant, operationally unstable, unable to meet contract requirements, unable to maintain proper insurance or vehicle readiness, unable to provide dependable coverage, or significantly higher in cost without delivering stronger service value. In other words, the focus should be on eliminating unnecessary risk and inefficiency, not eliminating responsible suppliers who continue to perform well.

A smart CDS strategy under DFA should reward the suppliers who make USPS stronger, whether they operate one route or many. If a supplier is compliant, dependable, competitively priced, and delivering good service, there is value in keeping that supplier in the network. If a supplier creates repeated service issues, administrative burden, avoidable cost, or compliance risk, then USPS has a legitimate business reason to reevaluate that relationship.

The best outcome for all parties is a CDS network that is stable, competitive, compliant, and performance-driven. That kind of network helps USPS meet its long-term goals while also giving suppliers a fair opportunity to continue growing, investing, and delivering value.

All suppliers should understand the direction clearly: the future will likely favor those who can demonstrate reliability, compliance, flexibility, and value. Size alone should not determine who remains. Performance should. ~ CDS Solutions ... See MoreSee Less