I wanted to help everyone interested know where we are at so far. Below is the ONLY response we have received from ANY USPS partner.

The most frustrating part of it all has been treated like trash by a National Service and company we have faithfully partnered with for over 30 years. 

As you will see in the statement below, this termination of contract will not be stopped as they see CPUs like The Mail Depot (a small locally run shop) as expendable. 

IMPORTANTLY. The Mail Depot will not close. 

My partner and I are setting up a plan to provide the same services (with some minor changes) as we always have. While it is deeply frustrating, we love this community very much and we want to keep our shop open for you. I will update you all as we get closer to OCTOBER 1st (Official Termination date). 

Here is the response we have received after 2 months of trying to get assistance and information from the USPS.

At the outset, it is important to realize that the Mail Depot is not a Post Office. Though it offers postal services and products to customers, it does so under an agreement as a Contract Postal Unit (CPU). Unlike our own Post Offices, Stations, and Branches, CPUs are run by third parties, generally as an adjunct to another offering or service, who have entered into a mutually beneficial agreement with the Postal Service on set terms.

In general, CPUs benefit the Postal Service and our customers by making it possible to offer certain products and services at more venues. CPUs are especially useful in areas where our own retail facilities may need added capacity but where the business case does not justify the expense of an added Postal Service–operated facility. The CPU operator directly benefits from contract payments and a percentage of sales (depending on the terms of the contract), and indirectly benefits through greater foot traffic to their establishment. In capacity-constrained areas, this can represent a win-win situation—the Postal Service can augment its local capacity for a price, while the third-party operator benefits financially.

As tools to help us provide retail service, CPUs’ primary advantage is flexibility.  Unlike a Postal Service–operated retail facility, we can quickly put a CPU in place with minimal capital outlays or additional employees.  Conversely, our third-party providers can quickly add a new service, a new revenue stream, and a new draw for customers.  Crucially, for both parties, if business conditions change or if either party no longer wishes to continue, the CPU agreement allows either party to terminate the relationship with a 120-day notice.

As a federal establishment that must cover its expenses through the sale of its products and services, the Postal Service approaches its contracts as a similarly situated business would.  We continually evaluate whether we are receiving good value and return for our contract dollar and whether fluctuating business conditions have altered our operational needs.  As a part of these regular efforts, our Retail Operations and Supply Management group have examined The Mail Depot CPU and judged that there is no longer a compelling business or service rationale to continue the contract.

While each CPU situation is unique, in the case of the Mail Depot CPU, there are other Post Offices in the surrounding area.  The Vista Post Office, located at 960 Postal Way, Vista, CA 92083-9998, is only 2.8 miles or a 5-minute drive from the CPU location.  There is currently no business rationale to continue to pay for third-party contract service given our ample retail capacity in the area.  For instance, the Vista Post Office Post Office has enough excess capacity on its own to absorb any counter traffic.

While we acknowledge that some in the community would prefer that we continue to pay for capacity that business conditions no longer call for, the truth is that the Postal Service must improve its efficiency. Last year, the Postal Service recorded a net loss of $9.5 billion despite making substantial strides with our 10‑year Delivering for America restructuring plan.  The ongoing business turnaround effort has reduced annual work hours, eliminating 44 million in three years, resulting in annual savings of $2.3 billion.  Some of these savings are because of the shift to more efficient, more automated facilities.  We reduced annual transportation costs by $1.2 billion by shifting volume to our more efficient ground service network, insourcing some local transportation and transportation network functions, and making alignment adjustments throughout our operations to move mail more reliably and affordably.  As we continue to control costs and increase revenue through more competitive product offerings, we are making a concentrated effort to examine all aspects of our operations and eliminate contracts where it makes business sense.

While we appreciate our long relationship with the operators of the Mail Depot CPU, at this time it is the proper business decision to terminate the contract, according to the mutually agreed terms.  We look forward to serving our customers at our numerous retail facilities, where we have ample capacity without having to pay for a third-party contract.