This idea will save money for EVERY governmental agency who mails packages using a third party vendor.
Currently, we have a negotiated contract with UPS so it is cheaper to send packages using UPS. Can the USPS and the US Government get together and work out a negotiated contract like the ones we have with UPS and FedEx? It does not make good sense to pay a third party to do what a government entity can do.
The outcome that I would expect is that mailing packages would cost the same or less under the contract with USPS as it does with using UPS or FedEx. The volume of mail processed by the USPS will increase dramatically helping to offset their financial troubles.
I am sure there will be hurdles such as the lobbying efforts of the third party vendors. I am sure some legal efforts will have to be undertaken to allow the USPS to enter into a contract that provides a discounted rate for governmental entities versus the general public, but in the end everyone (other thean UPS and FedEx) will benefit. I think this will allows the USPS to operate in less of a deficit which means less subsidizing by the federal government and more funds to either reduce an overall deficit or funds for other programs.