Statement of Work - Draft -Real Estate.pdf

6HQOIG-26-A-0004 Attachment 1 1

United States Postal Service

Office of Inspector General

Research and Insights Solution Center (RISC)

Statement of Work

Benchmarking Postal Service’s Real Estate Strategies

1. Introduction

The United States Postal Service Office of Inspector General (OIG) is awarding a contract to a Supplier who will provide specific subject matter expertise (SME) in industrial real estate, commercial logistics, and financial modeling. The purpose of this contract is for the supplier to assist the OIG (RISC Research) prepare a white paper that will analyze trends in the industrial real estate market and review the Postal Service’s industrial asset strategies.

The contract type is Firm Fixed Price (FFP) with a maximum budget of $60,000.

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 and Insights Solutions Center (RISC) accomplishes the OIG’s mission by providing comprehensive analytics services and research products. Specifically, RISC’s research teams conduct innovative research and analysis, and produces white papers on critical economic, business, technology, and policy issues affecting USPS and the PRC.

White papers are issued to the Postal Service (and the PRC, when relevant) and published on the OIG website.

The project, titled The USPS Real Estate Portfolio: Current Strategies and Global Best

Practices, is primarily focused on three key objectives: describing the Postal Service’s current real estate portfolio and management strategies—including its organizational structure and the legal framework that governs its assets—and synthesizing successful real estate strategies from international postal operators and private logistics firms to identify global best practices. Finally, the project will prioritize potential applications for

6HQOIG-26-A-0004 Attachment 1 2 monetization and cost reduction, while carefully highlighting implementation challenges, legal constraints, and the expected financial benefits of these proposed strategies.

3. Scope of Work

The supplier will provide written and oral advice regarding Business Feasibility Modeling and Industrial Asset Monetization for USPS real estate. This includes identifying market demand for repurposed logistics space, benchmarking private sector norms and best practices, and providing financial modeling for various facility uses. To meet the specified budget constraints, the supplier will prioritize the use of publicly available data and focus on representative calculations rather than a forensic audit of the entire USPS portfolio.

The objectives of this research are to analyze:

1. Domestic benchmarking: Analyze how large domestic private logistics and retail companies manage and generate revenue from their industrial real estate portfolios.

2. Gap analysis: Identify gaps between the Postal Service’s corporate real estate strategies and current best practices. For example, provide a high-level assessment of how current

USPS "legacy" lease structures differ from modern leasing strategies.

3. Evaluation and quantification of alternative strategies. Describe, prioritize and analyze potential monetization and cost savings opportunities for the Postal Service.

The main deliverables will be Research Notes. For quality assurance purposes, the

Research Notes will include sources for all data and other information provided.

The Supplier will also participate in calls (for example, with the Postal Service) and meetings with the USPS OIG.

To meet the specified budget constraints, the supplier will prioritize the use of publicly available data and focus on representative prototype models rather than a forensic audit of the entire USPS portfolio.

4. Tasks

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

a. Virtual Kick-off Meeting

Due within one week after contract award (ACA) per OIG Protocol.

b. Preparation of Research Notes

The Supplier will research major trends impacting the industrial logistics market and explain their implications for the USPS.

6HQOIG-26-A-0004 Attachment 1 3

I. Research Note #1: Benchmarking Private Sector Real Estate Strategies &

KPIs: Analyze how large domestic private logistics and retail companies manage and generate revenue from their industrial real estate portfolios. Provide key metrics (eg, relevant KPIs) for these companies to allow high-level comparisons between USPS’s and their real estate portfolios and strategies.

At the beginning of the preparation of this Note, the Supplier will agree with the

OIG the number and list of companies to be included in the analysis, based on project budget and feasibility/data availability considerations.

II. Research Note #2: Identifying Gaps in USPS vs. Private Sector Best

Practices: Map misalignments between current USPS real estate strategies and modern industry models like core-and-flex or triple-net agreements.

III. Research Note #3: Evaluate and quantify alternative strategies for the Postal

Service: legal and operational feasibility, implementation steps, investment requirements, estimates of potential cost savings, revenue generated, and ROI. At the beginning of the preparation of this Note, the Supplier will agree with the OIG the list of strategies to be considered and the valuation methodologies to be used, having regard to project budget, data availability, and feasibility considerations.

To inform the preparation of the Research Notes, the Supplier will work with the OIG to prepare interviews the OIG will set up with the Postal Service and will participate in these interviews. To inform Research Note #1 the Supplier may also conduct separate interviews, for example, with other companies, to inform as needed.

To the extent possible, and subject to agreement between the OIG, USPS, and the

Supplier, the OIG will provide Postal Service data the Supplier may require to conduct the analysis.

c. Technical Review of OIG Work Products

The Supplier will review the OIG’s draft white paper for accuracy and completeness.

d. Closeout meeting: A virtual closeout meeting will be held to close the project and discuss any questions and/or lessons learned.

5. Deliverables

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

6HQOIG-26-A-0004 Attachment 1 4

PHASE DELIVERABLE

(REFERENCE SOW

SECTION)

DESCRIPTION DUE DATE

(WEEKS

ACA)

PHASE

4a. Kick-Off Meeting: Project alignment and protocol review.

1 Week ACA

4b. (i) Draft Research Note #1:

Benchmarking Private Sector Real

Estate Strategies & KPIs:

4 Weeks ACA

4b. (ii) Draft Research Note #2:

Identifying Gaps in USPS vs. Private

Sector Best Practices

6 Weeks ACA

4b. (iii) Draft Research Note #3: Evaluate and quantify alternative strategies for the

Postal Service

10 Weeks

ACA

PHASE

4c. Final Research Report: Integrated findings (all three Research Notes including and source documentation.

11 Weeks

4d. Technical Review: Review of OIG draft reports (capped at 10 hours).

As Requested

4e. Closeout Meeting: Final presentation of findings and lessons learned.

12 Weeks