SOW Digital Channels.pdf

6HQOIG-26-A-0008 Attachment 1 1

United States Postal Service Office of Inspector General

Research and Insights Solutions Center

Statement of Work Cultivating the Postal Service’s Digital Channels: White Paper Support

1. Introduction

The United States Postal Service (USPS) Office of Inspector General (OIG) is awarding a contract to a Supplier who will provide subject matter expertise and research support for a white paper exploring the Postal Service’s digital channels, such as usps.com. The white paper will analyze digital revenue trends, benchmark USPS digital channels against those of foreign postal operators and/or domestic competitors, identify opportunities to increase revenue through digital channels, and identify opportunities to improve the user experience of digital channels.

The contract type is Firm Fixed Price (FFP).

The total price is not to exceed $100,000.

2. Background

The USPS OIG is an independent federal law enforcement agency providing oversight to the U.S. Postal Service (USPS) and the Postal Regulatory Commission (PRC). Its mission is to:

• conduct and supervise objective and independent audits, reviews, and investigations relating to Postal Service and PRC programs and operations,

• promote economy, efficiency, and effectiveness within the Postal Service and PRC, and

• inform the Postal Service Governors, Postal Service management, PRC Commissioners and Congress of problems, deficiencies, and corresponding corrective actions.

The Research directorate within the USPS OIG conducts research on issues of strategic importance to the U.S. Postal Service. Research findings are published in public-facing white papers and other formats, such as digital stories and podcasts. The audience for white papers includes the Postal Service, Congress, postal stakeholders, and the general public.

The Research directorate is planning a forthcoming white paper exploring the Postal Service’s digital channels, including their use, current revenue streams, and

6HQOIG-26-A-0008 Attachment 1 2 opportunities to increase revenue. Within the scope of this white paper are the following digital channels:

• Parts of the USPS website (usps.com) targeted towards general users or small businesses

• USPS Mobile App

• Informed Delivery and Informed Delivery app

• Online postage services directly hosted by USPS like Click-N-Ship and Label

Broker

Excluded from the paper are:

• Third party websites selling USPS postage

• Parts of the USPS website (usps.com) targeted towards commercial customers, such as Postal Pro

The Postal Service faces a financial crisis. In FY2025 alone the agency reported a $9 billion loss, and aggregate losses of $118 billion since FY 2007. Multiple factors contribute to the Postal Service’s poor financial condition, especially declining mail volume which puts downward pressure on revenue and retirement-related expenses which put upward pressure on costs. Reforms such as increased pricing authority, elimination of retiree health pre-funding payments, network optimization, and increased use of ground transportation have not been sufficient to close the persistent financial gap. While the OIG has previously reviewed some revenue-generation opportunities such as additional pricing reform and the expansion of government services at physical post offices, we have never specifically explored the revenue potential of the Postal Service’s digital footprint including usps.com, Click-N-Ship, Label Broker, and the USPS Mobile App.

Specifically, the paper will answer the following research questions:

1. What are the usage trends for USPS digital channels, such as page views, app downloads, and other relevant metrics?

2. What are the primary reasons customers visit usps.com and other digital channels?

3. What are the revenue trends from digital channels over the past ten fiscal years, FYs 2016 through 2026? (This includes all digital revenue sources.)

4. How do the Postal Service’s digital channels compare to those offered by foreign postal operators and domestic competitors? For example, what services or products are offered and what are the revenue streams?

5. What opportunities exist for the Postal Service to increase revenue through its digital channels? Increased revenue may come from entirely new revenue streams, charging for existing digital services, or reducing friction in existing streams.

6HQOIG-26-A-0008 Attachment 1 3

6. What is the user experience of completing revenue-generating tasks on USPS digital channels (e.g., purchasing postage)? How does the user experience enhance or detract from the Postal Service’s ability to generate revenue online?

The Supplier will work with the OIG to answer research questions 4, 5, and 6. The OIG will conduct analysis internally to answer research questions 1, 2, and 3.

The paper will focus on digital channels for the general public and small businesses. The paper will not include a review of digital channels designed for commercial mailers and shippers, such as Postal Pro.

3. Scope of Work

The Supplier shall provide four research notes summarizing findings of the topics described below. In addition, the Supplier will meet with the OIG at the frequency discussed below and review and comment on a draft white paper.

In order to accomplish the above scope, the Supplier shall perform the following tasks:

a. Task 1: Research Note Benchmarking USPS Digital Channels Against Those of Foreign Postal Operators

The supplier will prepare a research note in Microsoft Word format summarizing how USPS digital channels, such as usps.com, the USPS Mobile App, and other channels compare to digital offerings from foreign postal operators. Particular areas of interest include:

• Postal services available through digital channels (e.g. locate a post office, digital mailboxes)

• Non-postal commercial services available through digital channels (e.g., bill payment)

• Non-postal government services available through digital channels (e.g., passport services)

• How posts monetize their websites

The note must describe the following:

• A review of USPS digital channels and common digital offerings from foreign posts, with an assessment of how USPS offerings compare. In addition, digital offerings that are not common may be included if they reflect emerging trends or other potential insights.

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• A review of USPS digital revenue streams and a comparison to digital revenue streams of foreign postal operators. This does not include a review of the revenue amounts, only the various ways digital channels generate revenue.

The research note should not exceed 5 single-spaced pages in 12-point font. Attachments such as screenshots or other supplemental content may exceed the 5-page limit.

b. Task 2: Research Note Benchmarking USPS Digital Channels Against Domestic Competitors

The supplier will prepare a research note in Microsoft Word format summarizing how USPS digital channels, such as usps.com, the USPS Mobile App, and other channels compare to digital offerings from domestic competitors. Particular areas of interest include:

• Postal services available through digital channels (e.g. locate a post office, storefront, or dropoff point; digital mailboxes)

• Non-postal services available through digital channels (e.g., passport services, bill payment)

• How competitors monetize their websites

The note must describe the following:

• A list of USPS digital channels and common digital offerings from domestic competitors such as Amazon, UPS, and FedEx. Other domestic parcel operators may be included in the review. In addition, digital offerings that are not common may be included if they reflect emerging trends or other potential insights.

• A review of USPS digital revenue streams and a comparison to digital revenue streams of domestic competitors. This does not include a review of the revenue amounts, only the various ways digital channels generate revenue.

6HQOIG-26-A-0008 Attachment 1 5

c. Task 3: Research Note Assessing the User Experience of Revenue- Generating Tasks on USPS Digital Channels and Opportunities for Improvement

The supplier will prepare a research note in Microsoft Word format summarizing the user experience (UX) of completing revenue-generating tasks (e.g., purchasing postage) on USPS digital channels, including usps.com, the USPS Mobile App, and other channels. The goal of this task is to conduct a broad, heuristic review of the website and characteristics that prevent customers from making purchases. The intent is not to conduct usability testing. The note must answer the following questions:

• What is the user experience of completing revenue-generating tasks on USPS digital channels, such as usps.com and the USPS Mobile App? Revenue-generating tasks may include but are not limited to purchasing postage, stamps, or other merchandise.

• What barriers or friction may prevent users from completing these tasks, potentially having a negative impact on USPS revenue?

The Supplier should expect to budget no more than 20 percent of the overall budget for this task. The UX review must not include assessments of website accessibility (e.g., 508 compliance).

d. Task 4: Research Note Identifying Revenue-Generation Opportunities from USPS Digital Channels

The supplier will prepare a research note in Microsoft Word format describing potential revenue-generation opportunities from USPS digital channels. This may include expanding or refining existing revenue generation channels or the identification of entirely new digital revenue streams. The Supplier must consider the Postal Service’s status as a government agency when evaluating potential revenue streams.

While the OIG has done significant research on diversifying revenue streams at physical post offices (e.g., offering expanded government services) there has been less research on diversification of online revenue streams. The note must answer the following questions:

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• What existing revenue streams could be modified to increase revenue potential?

The Supplier must consider the Postal Service’s status as a government agency when evaluating potential revenue streams.

• Based on research for Tasks 1, 2, and 3, what new revenue streams could USPS consider implementing and what is the estimated revenue that could be generated from implementation?

e. Task 5: Participate in Regular Meetings with the OIG.

The supplier will participate in the following meetings with the OIG. Meetings may be held virtually or in-person depending on the location of the Supplier.

1. Kick-off meeting within one week of contract award.

Due within one week after contract award, a Project Kick-Off Meeting will be held between the Supplier and the OIG. The meeting will provide an introduction between the Supplier personnel and OIG personnel who will be involved in the contract, including Research staff and contracting representatives. The meeting will provide the opportunity to discuss the project and planned approach, data and information needs, project timeline, and other topics.

2. During the duration of the project, meet at least every 2 weeks with the OIG team to discuss status updates, data needs, roadblocks, and share draft research findings.

3. After draft research notes are shared with the OIG, meet with OIG staff to review and answer questions.

4. After draft white paper is shared with Supplier (see Task 6), meet with OIG staff to review and share feedback.

f. Task 6: Read and provide comment on a draft white paper to ensure accuracy and clarity.

The OIG will provide a draft white paper to the Supplier after all research notes have been shared with the OIG. The Supplier will read and review the white paper to ensure research

6HQOIG-26-A-0008 Attachment 1 7 findings are communicated accurately and with clarity. Feedback from the white paper review may be shared in a meeting (see Task 5). The meeting should be held within one week of receiving a draft of the white paper.

4. Deliverables

The Supplier shall deliver the following services, by the dates specified in the table below.

The OIG intends to formally begin work on the project in October 2026.

Deliverable Number

Description Due Date(s) Reference SOW Section

N/A Contract Award Estimated October 1, 2026

N/A

1 Kickoff Meeting On or around October 1, 2026

3.e.1

2 Research Note Benchmarking USPS Digital Channels Against Those of Foreign Postal Operators

3 months after kickoff (Estimated January 4, 2027)

3.a

3 Research Note Benchmarking USPS Digital Channels Against Domestic Competitors

3 months after kickoff (Estimated January 4, 2027)

3.b

4 Research Note Assessing the User Experience of Revenue-Generating Tasks on USPS Digital Channels and Opportunities for Improvement

3 months after kickoff (Estimated January 4, 2027)

3.c

5 Research Note Identifying Revenue-Generation Opportunities from USPS Digital Channels

3 months after kickoff (Estimated January 4, 2027)

3.d

6 Regular meetings with OIG (biweekly)

Throughout duration of project

3.e.2

7 Meet with OIG to discuss research notes

Within 2 weeks of OIG receiving

3.e.3

6HQOIG-26-A-0008 Attachment 1 8 research notes (Estimated January 18, 2027)

8 Meet with OIG to share feedback on white paper draft

Approximately 5 months after kickoff (Estimated March 1, 2027)

3.e.4

9 Read and provide comment on a draft white paper to ensure accuracy and clarity

Approximately 5 months after kickoff (Estimated March 1, 2027)

3.f