(Federal Times)  Though the U.S. Postal Service has been ramping up its spending on outside contractors, some industry observers say it will have to outsource even more of its work if it aims to improve efficiency and remain competitive. For fiscal 2005 the Postal Service spent about $12 billion on contractors for goods and services, including fuel, according to David Hendel, attorney with Wickwire Gavin in Vienna, Va. which monitors Postal Service contractor spending.

And main question is, why isn’t the Postal Service doing less of some kinds of work?” Hendel asked. “Especially in the area of transportation, they save when they contract out. Postal employees are very expensive — about 80 percent of all their costs.  FedEx, the biggest Postal Service supplier by far, last year was paid more than $1.36 billion dollars to move agency mail. That is up from $1.16 billion in 2004 and from $1.07 billion in 2003. Fedex’s seven year contract is up next year. FULL STORY

U.S. Postal Service Reveals Top 10 Suppliers for FY 2005 (Wickwire Gavin)”In response to a FOIA request from Wickwire Gavin, the U.S. Postal Service has announced its Top Suppliers for Fiscal Year 2005.  Ironically, Federal Express - one of the Postal Service’s main competitors - takes the top supplier spot for the third year in a row.  Learn who else is on the list by reading Wickwire Gavin’s January 31, 2006, press release and the accompanying Top Suppliers List.  For more information on contracting with the U.S. Postal Service, visit the Postal Contracting section of our Web site.”