US Stamps

Stamp Fulfillment Services comes under PRC scrutiny

Mar 27, 2020, 1 PM
The United States Postal Service’s Stamp Fulfillment Services center is located in Kansas City, Mo.

By Bill McAllister, Washington Correspondent

The United States Postal Service’s Stamp Fulfillment Services center in Kansas City, Mo., has once again come under fire from the Postal Regulatory Commission.

In the commission’s annual compliance determination report, the Missouri center was once again criticized by the commission for failing to produce enough revenue to cover the center’s costs.

The report, published March 25, noted that the fulfillment center’s $4.1 million in revenue in fiscal 2019 covered 94.5 percent of the operation’s $4.3 million in costs.

That was an improvement over the 87.4 percent coverage in fiscal 2018, but below the 97.2 percent coverage in fiscal 2017, according to the report.

The commission did, however, give the center, which handles mail, fax, telephone and online orders of stamps, some credit for the financial shortfall.

“The financial performance of the SFS does not entirely capture the value that the Services Center adds to the Postal Service and to other Postal Service products,” the report said.

“Although SFS does not cover its attributable cost, by providing a mechanism for the centralized ordering of stamps, it reduces the costs associated with the retail purchases of stamps,” it said.

The commission urged the Postal Service to continue to press Stamp Fulfillment Services for better cost coverage.

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