The District of Santa Ana has not approved, controlled or retained copies of its facility load contracts. The agreements were approved with incomplete information, the quantities and weights of the facilities were not sufficiently monitored and previous documents of the facility load contracts were not retained. As a result, there is less assurance that these agreements are financially advantageous to the post office. Concretely: electronic induction (eInduction): an electronic alternative to manual preparation and deposition of forms PS 8125, 8125-C, 8125-CD and 8017. For more information, including verification and related reviews, see publication 685, Publication for Streamlined Mail Acceptance for Letters and Flats, at: postalpro.usps.com/ StreamlinedMailAcceptLettersFlatsPub685. These problems arose because the borough did not provide sufficient supervision of these agreements. In concrete terms, the borough has not set up, as it should, a plant loads committee to monitor the approval and monitoring of these agreements. The borough management explained that this had not been established, as issues relating to the facility charge agreement were discussed at weekly district meetings. In addition, the borough did not have procedures for monitoring performance or maintaining previous agreements. Our goal was to evaluate the effectiveness of facility load agreements in the Santa Ana district. We selected this district based on volume and revenue declines between fiscal year 2018 and GJ 2019, with 190 million units (22 percent) and $37.5 million (18 percent). Mail unit (DMU) mailers and mailers who enter complete mailings in a Business Mail Entry Unit (BMEU) must participate in the Seamless Parallel program.

For more information on the seamless Parallel Program, see Publication 685, Publication for Streamlined Mail Acceptance for Letters and Flats, available at: postalpro.usps.com/ StreamlinedMailAcceptLettersFlatsPub685. There are three types of facility load contracts that differ in the distance from postal travel and which the postal service or customer supports. These three types of agreements are called intercommunal, interdistrict and accelerated. In December 2019, the District of Santa Ana signed eight facilities load contracts – three intra-districts and five accelerated. Facilities load agreements are special agreements between the U.S. Postal Service and some commercial postal workers. Factors interested in establishing a facility transportation contract must already have a postal-approved carte blanche office (DMU) in their postal dispatch plant, with a postal worker performing on-site post-verification, acceptance, shipping and other related functions. The mail is then transported by the DMU to a post office for acceptance and processing. Once a DMU has been put in place, installation load agreements may be requested by these mailers, with the mailer pledging to provide certain amounts of mail volume and weight on a certain type of sorting.