Audit Highlights
The U.S. Postal Service Office of Inspector General (OIG) recently evaluated the management, safety, security, and efficiency of Contract Delivery Service (CDS) operations nationwide. The report identifies several areas where CDS suppliers and Postal Service management may need to strengthen practices, including carrier security clearances, safe driving, accident reporting, language requirements, local oversight, and payment accuracy. Follow the link to view the Highlights directly from the OIG Report and learn more.
Click Below to View OIG Highlights Directly from the Report
Audit Results
The U.S. Postal Service Office of Inspector General (OIG) evaluated the management, efficiency, and safety of Contract Delivery Services (CDS), reviewing how suppliers and Postal Service administrative officials manage contractual and operational requirements. The audit found several issues affecting mail security, carrier safety, and operational efficiency, including inconsistent security screening, gaps in accident reporting and English proficiency evaluation, inconsistent adherence to CDS policies, incorrect extra-trip payments, and limited headquarters oversight. These findings may lead to increased costs, operational inefficiencies, and greater safety and security risks for CDS suppliers and the Postal Service.
Click Below to View OIG Results Directly from the Report
Supplier Readiness Overview
Prepare Now for July 31, 2027
USPS has identified July 31, 2027 as a target date for corrective actions related to OIG Report 25-136-R26. CDS suppliers should use the time now to review existing requirements, correct gaps, and organize the records needed to demonstrate compliance.
Verify. Correct. Document. Be Ready.
The audit does not create a new supplier deadline by itself, but many of the issues identified may involve requirements already contained in your CDS contract, Statement of Work, or USPS instructions.
Key Readiness Areas
Employees & Security
Verify screening, security clearances, badges, barcodes, and required AO/PM records.
Badge Renewals
Track expiration dates and set reminders 30–60 days in advance.
Personnel Qualifications
Confirm required preliminary screening and applicable Statement of Work requirements.
Vehicles
Make sure every vehicle meets applicable contract, capacity, inspection, and safety requirements.
Performance
Document service issues, corrective actions, PS Form 5500 matters, and AO/PM communications.
Extra Trips
For every extra trip:
- Confirm authorization.
- Make sure PS Form 5397 is completed accurately and signed.
- Retain a copy for your records.
- Verify the correct rate and payment.
Safety
Make sure drivers understand accident-reporting procedures and required documentation.
Route Changes
Track significant changes in delivery points, mileage, volume, completion time, and other route conditions.
Keep the Evidence
Maintain organized records for:
Employees | Screening | Badges & Barcodes | Vehicles | Performance | PS Form 5500 | PS Form 5397 | Safety | Route Changes | AO/PM Communications
Your records should be:
CURRENT | COMPLETE | ORGANIZED | EASY TO PRODUCE
Readiness Check
Ask yourself:
- Can I verify every active CDS employee?
- Are badges and barcodes current?
- Do vehicles meet contract requirements?
- Can I produce completed and signed PS Forms 5397?
- Are performance, safety, and route issues documented?
- Can I quickly produce supporting records?
If the answer to any of these questions is NO or UNKNOWN, that is where your readiness review should begin.
Bottom Line – Don’t Wait. Verify Now.
A prepared CDS supplier should be able to say:
“We reviewed our operation, corrected known gaps, kept the supporting records, and can produce the evidence when needed.”
July 31, 2027 Preparation Timeline
A Practical Roadmap for CDS Supplier Readiness
Use the months ahead to correct known gaps, organize records, and prepare for increased USPS oversight.
Phase 1 — Review & Correct
August–October 2026
Focus first on areas that may involve existing requirements:
- Employee screening and security clearances
- AO/PM personnel records
- Badges and individual barcodes
- Badge-sharing or credential issues
- Personnel qualifications
- Vehicle compliance
- Accident-reporting procedures
- Extra-trip documentation
Goal: Identify and correct immediate compliance and documentation gaps.
Phase 2 — Organize & Document
November 2026–January 2027
Build or update your compliance files:
- Employee roster
- Screening-document tracker
- Badge and barcode tracker
- 30–60 day badge-expiration reminders
- Vehicle records
- Preliminary-screening records
- PS Form 5500 files
- Completed and signed PS Forms 5397
- Extra-trip payment records
- Safety and accident files
- Route-change documentation
- AO/PM communications
Goal: Make sure important records are complete, current, and easy to produce.
Phase 3 — Self-Audit
February–April 2027
Review each employee and route against:
- CDS contract
- Statement of Work
- Security and screening requirements
- Badge and barcode status
- Vehicle requirements
- Performance records
- Extra-trip authorizations and payments
- Safety procedures
- Route conditions
Goal: Find and resolve discrepancies before increased oversight identifies them.
Phase 4 — Final Readiness Review
May–July 2027
Confirm that your records are:
CURRENT | COMPLETE | ORGANIZED | SEARCHABLE | SUPPORTED
Resolve outstanding issues involving:
- Expiring or missing credentials
- Incomplete screening records
- Vehicle compliance
- Unsigned or incomplete PS Forms 5397
- Payment discrepancies
- Unresolved performance issues
- Safety documentation
- Material route changes
Goal: Enter July 31, 2027 with a documented, organized, and review-ready CDS operation.
Final Readiness Check
Before July 31, 2027, ask:
- Can I verify every active CDS employee?
- Does the AO/PM have the required employee screening records?
- Are badges and barcodes current?
- Do all vehicles meet applicable contract requirements?
- Are extra trips supported by completed and signed PS Forms 5397?
- Are performance and safety issues documented?
- Are material route changes recorded?
- Can I quickly produce supporting documentation?
Bottom Line – Don’t Wait Until July 2027
Review now. Correct early. Keep the evidence. Be ready.
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