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Greed is Good at the USPS

Remember this the next time you're buying stamps at the post office. An audit of the U.S. Postal Service has found that top mail executives left employment there and then returned a few months later as "knowledge transfer" contractors, racking up hefty fees. The Washington Times reports:

"These contracts were put in place, even though highly experienced postal executives filled the positions vacated by the former executives," the inspector general's office concluded in a report, which was ordered by two senators amid a procurement scandal involving the agency's former top marketing officer.

One former vice president retired in May and within two months received a $260,000 no-bid "knowledge transfer" contract for the postal executive who assumed his old job, the report found.

Overall, the inspector general's office found 17 no-bid contracts awarded to former postal executives within a year of their retirement dates ranging from October 2006 to September 2009.

Citing three of the contracts, the report found the rate was $75 an hour for one former executive and $160 an hour for two others. The fees were between $6 and $72 an hour higher than the hourly rate the executives made at the Postal Service, according to the report.

Such contracting practices raise serious ethics concerns, the inspector general's office warned in the report: "It appears unethical to hire back former executives at nearly twice their former pay to advise new executives who were placed in their position based on their expertise and years of Postal Service experience.

I think it's safe to eliminate the "appears" unethical part.

View all comments (2) | Leave a comment

Oldefarte| 9.27.10 @ 11:58AM

ADVISORS, give me a break! No doubt they advise on such things as THE BEST WAY TO INSTALL A SCREEN DOOR ON A SUBMARINE [or possibly HOW TO CHARGE A PENNY FEE FOR THIRD CLASS MAIL AND MAKE A PROFIT FROM SAME] at the taxpayer money bleeding operations at the USPS!!!!

JD| 10.5.10 @ 9:43AM

I understand Oldefarte's rant and most is probably deserved by the managers there. But he had one thing wrong, the Postal Sevice works from the income off stamps, not tax payer money.

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More Blog Posts by David N. Bass

http://spectator.org/blog/2010/09/27/greed-is-good-at-the-usps

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