Ex-Postal Executives Return For High-Pay Contracts

Even as the U.S. Postal Service began sliding into the worst financial crisis in its history, some postal executives in recent years found a way to earn more money by resigning from their jobs and returning as highly paid contractors while doing essentially the same work.

In three recent contracts awarded without competitive bidding, for instance, former Postal Service executives were hired to perform what contracting records described as "knowledge transfer," according to a review of the agency's multibillion-dollar contracting operation by the Postal Service's office of inspector general.

"These contracts were put in place, even though highly experienced postal executives filled the positions vacated by the former executives," the inspector general's office concluded in a report, which was ordered by two senators amid a procurement scandal involving the agency's former top marketing officer.

One former vice president retired in May and within two months received a $260,000 no-bid "knowledge transfer" contract for the postal executive who assumed his old job, the report found.

Overall, the inspector general's office found 17 no-bid contracts awarded to former postal executives within a year of their retirement dates ranging from October 2006 to September 2009.

Citing three of the contracts, the report found the rate was $75 an hour for one former executive and $160 an hour for two others. The fees were between $6 and $72 an hour higher than the hourly rate the executives made at the Postal Service, according to the report.More on this