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<classification authority="sudocs">GA 1.13:GGD-96-8</classification>
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 <subject>Postal law</subject>
 <subject>Postal rates</subject>
 <subject>Postal service</subject>
 <subject>Competition</subject>
 <subject>Cost control</subject>
 <subject>Labor costs</subject>
 <subject>Operations analysis</subject>
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<titleInfo>
 <title>U.S. Postal Service: Postal Ratemaking in Need of Change</title>
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<abstract>GAO examined the U.S. Postal Service&apos;s proposals for modifying the
postal ratemaking process, focusing on: (1) how the current ratemaking
process could be improved; and (2) the effects of the 1970 Postal
Reorganization Act on postal rates.&lt;p/&gt;GAO found that: (1) the Postal Service has petitioned the Postal Rate
Commission to give it more flexibility in pricing postal products and
establish a market-based mail classification schedule; (2) new Postal
Service pricing mechanisms could minimize mail volume losses and keep
rates lower for most mail classes; (3) Congress may have to clarify the
1970 ratemaking criteria because the Postal Service and Commission
disagree on the extent that market forces impact postal rates; (4)
postal ratemaking usually takes 10 months to complete and it does not
include the time the Postal Service spends preparing rate cases and
appeals; (5) proposed postal ratemaking reforms include developing
accelerated procedures for market testing new products, establishing
rate bands for competitive products, and allowing volume-based rates for
high volume shippers; and (6) the Postal Service needs to be able to
control labor costs and resolve workforce issues to remain competitive
in the postal marketplace.</abstract>
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<identifier type="preferred citation">GAO/GGD-96-8</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/GGD-96-8; U.S. Postal Service: Postal Ratemaking in Need of Change;
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<subject>
 <topic>Postal law</topic>
 <topic>Postal rates</topic>
 <topic>Postal service</topic>
 <topic>Competition</topic>
 <topic>Cost control</topic>
 <topic>Labor costs</topic>
 <topic>Operations analysis</topic>
 <topic>Government sponsored enterprises</topic>
 <topic>Labor-management relations</topic>
</subject>
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  <partNumber>Title 18 Section 1693-1699</partNumber>
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  <title>United States Code</title>
  <partNumber>Title 39 Section 3622(b)</partNumber>
  <partNumber>Title 39 Section 601-606</partNumber>
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 <identifier type="USC citation">39 U.S.C. 3622(b)</identifier>
 <identifier type="USC citation">39 U.S.C. 601-606</identifier>
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