Bernstock quits USPS as investigation continues

Robert Bernstock, USPS president of Mailing and Shipping Services, has resigned from the company. Postmaster general John Potter said he will leave on 4 June, to pursue opportunities in the private sector.

Bernstock joined the Postal Service as president of the newly created Mailing and Shipping Services in June 2008, agreeing to work with the Postal Service for an initial period of two years.

“Bob led the effort to rethink and redesign the USPS customer experience. His talent, creativity and extensive business experience have benefited the Postal Service, our customers and our employees,” Potter said.

As president, Bernstock was responsible for all product management, product development, retail and commercial products and services, as well as commercial sales. The division is responsible for more than $65bn in annual revenue.

“Bob’s work will have long-lasting, positive impact on the Postal Service and its customers,” Potter said.

Bernstock is currently under investigation for awarding around $5.8m in no-bid contracts to his former business associates, according to the Federal Times.

The newswire said that Postal Service inspector general David Williams “is investigating Bernstock’s role in steering millions of dollars in consultancy and website modernisation contracts to people he worked with in the private sector. Federal Times reported in January that Bernstock had directed more than $1.3m in sole-source contracts to consultants Richard Sorota, Lynne Alvarez and Kimberly Wolfson. Bernstock had worked with all of them previously when he was an executive at Scotts Miracle-Gro, Vlasic and Nutrisystem.”

Furthermore, Federal Times said that Bernstock directed a $4.5m contract to Tatum LLC, in March, via a colleague who he worked with at Scotts Miracle-Gro and Vlasic.

“The Postal Service acknowledged that Bernstock directed the contracts to those people because he was familiar with them and how they worked. But postal officials said Bernstock broke no rules and said the general counsel’s office found no wrongdoing,” said the Federal Times.

The investigation is likely to be finished by early summer.

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