Colorado mountain residents are reporting that the end of a contract between the U.S. Postal Service and UPS has led to many packages being returned to sender and continued confusion about how to get packages delivered.

The U.S. Postal Service’s contract with UPS SurePost — the company’s economy shipping option — ended at the beginning of January. Residents soon learned, usually because their packages failed to arrive, that the change meant UPS would no longer deliver to P.O. boxes at U.S. post offices.

This has created a dilemma for many mountain residents, since the U.S. Postal Service won’t deliver packages to most physical addresses. Yet when shopping online, residents say it’s not easy to tell whether a vendor is sending a package via the U.S. Postal Service, UPS or another delivery company.

Under the now-expired contract, UPS was previously able to drop off packages at U.S. post offices for “last-mile delivery,” where residents with P.O. boxes could pick them up.

But since the contract ended, packages have been returned to sender, causing confusion about how to get parcels delivered in the mountains.

U.S. Postal Service response

The U.S. Postal Service said in a statement that it has been working to implement a “new strategic approach” with its contracts with package consolidator companies, such as UPS, that use its Parcel Select service for high voluming shipping — including negotiating new agreements.

“Prior agreements failed to reflect operational and financial realities, the evolving postal network or the enhancements to our portfolio of product offerings,” the U.S. Postal Service said in the statement. “As a result of our new approach, some businesses negotiated new agreements with us and some have not.”

A spokesperson for the U.S. Postal Service did not respond to questions regarding what the end of the contract with UPS SurePost means for those with P.O. boxes or how the changes could impact delivery in rural communities such as Grand County.

UPS also did not respond to questions about changes to its SurePost program, how customers a with P.O. box would be affected or the best way for customers to ensure that their mail reaches them.

The U.S. Postal Service said in its statement that it has maintained transparency throughout its “new strategic approach” and will continue to communicate “openly and transparently” moving forward.

“Throughout this process we have been transparent — both publicly and privately — with business partners, customers and the shipping industry about our intent to either negotiate new agreements or to let prior disadvantageous agreements expire,” the U.S. Postal Service statement said. “Communications to affected businesses began in the spring of 2024 with multiple, follow-up public announcements made through the end of the year. How these aggregating businesses have communicated about these developments to their stakeholders is beyond the control or responsibility of the Postal Service.”

U.S. Senator Michael Bennet said in a statement that he “continues to advocate that USPS prioritize excellent customer service in its operations and is deeply concerned by reports that President Trump plans to privatize the (Postal Service) or remove the board of governors.”