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<classification authority="sudocs">GA 1.13:GGD-96-59</classification>
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 <subject>Mail transportation operations</subject>
 <subject>Real estate purchases</subject>
 <subject>Federal procurement</subject>
 <subject>Postal service contracts</subject>
 <subject>Conflict of interest</subject>
 <subject>Internal controls</subject>
 <subject>Procurement practices</subject>
 <subject>Procurement procedures</subject>
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<titleInfo>
 <title>Postal Service: Conditions Leading to Problems in Some Major Purchases</title>
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<abstract>Pursuant to a congressional request, GAO reviewed whether changes are
needed in the Postal Service&apos;s purchasing program, focusing on whether:
(1) certain problem purchases were due to some underlying causes that
should be addressed through legislation; and (2) the Service should
implement additional procedural safeguards to minimize future
occurrences of such problems.&lt;p/&gt;GAO found that: (1) the problems encountered during the seven purchases
reviewed were due to Postal officials&apos; poor judgment, circumventions of
existing internal controls, and failure to resolve conflicts of
interest; (2) many contracting officers could not exercise independent
judgment, since they reported directly to those officials who required
the products or services; (3) the Service has taken action to increase
oversight and accountability over its purchasing process and to
safeguard against such future occurrences; (4) in response to
recommendations by the Office of Government Ethics, the Service has
outlined actions it is taking to improve its ethics program which should
help prevent the recurrence of such purchasing problems; (5) a formal
ethics education and training program for contracting officers and
personnel is underway; (6) the Service has established one purchasing
executive with management authority over the three separate Postal
purchasing groups; and (7) the Service plans to adopt a requirement for
more explicit documentation of and rationale for contracting officers&apos;
business and policy actions.</abstract>
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<subject>
 <topic>Mail transportation operations</topic>
 <topic>Real estate purchases</topic>
 <topic>Federal procurement</topic>
 <topic>Postal service contracts</topic>
 <topic>Conflict of interest</topic>
 <topic>Internal controls</topic>
 <topic>Procurement practices</topic>
 <topic>Procurement procedures</topic>
 <topic>Queens (NY)</topic>
 <topic>St. Louis (MO)</topic>
 <topic>Bronx (NY)</topic>
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