# USPS Reassesses Undeliverable Package Handling

A USPS Office of Inspector General audit found that the Mail Recovery Center substantially understated undeliverable-package volume: the reported return rate of about 39% was actually below 1%. The audit also identified approximately $109 million in losses over a little more than two years associated with commercial shippers declining return shipments. USPS is evaluating automation and options for collecting return and disposal costs, but the report identifies no solicitation or contract award.

- The findings point to potential future needs in package handling automation, tracking, and cost recovery, but do not represent an active procurement opportunity.
- Contractors serving postal and logistics operations can assess whether their capabilities address these operational challenges; any pursuit should be tied to a formal USPS procurement opportunity when one is issued.
- Procurement teams and commercial shippers should account for the documented costs associated with undeliverable shipments and declined returns when evaluating return and disposal arrangements.

**Jurisdictions:** federal
**Industries:** Transportation
**Published:** November 02, 2026

### Government Entities
- United States Postal Service (USPS)
- United States Postal Service Office of Inspector General (USPS OIG)

### Sources
- [
        A new audit digs into the Postal Service’s system for handling undeliverable packages - Federal News Network](https://federalnewsnetwork.com/agency-oversight/2026/11/a-new-audit-digs-into-the-postal-services-system-for-handling-undeliverable-packages) - Federal News Network