US Postal Delivery Contract to Launch Multi-Billion Dollar Modernization of the Postal Delivery Vehicle Fleet

WASHINGTON, February 23, 2021 / PRNewswire / – The US Postal Service announced today that it has awarded a 10-year contract for Oshkosh, WI, headquartered at Oshkosh Defense, to manufacture a new generation of postal delivery vehicles manufactured in the United States that will lead to the most dramatic modernization of the USPS fleet in three decades.

The historic investment is part of a plan that Correios will soon develop to transform its financial performance and customer service over the next 10 years through significant investments in people, technology and infrastructure, as it seeks to become the preferred delivery service provider. services for the American public.

Under contract initial $ 482 million investment, Oshkosh Defense will complete the production project of the Next Generation Delivery Vehicle (NGDV) – a right-hand drive vehicle built for the purpose of delivering mail and packages – and will assemble 50,000 to 165,000 of them in 10 years. The vehicles will be equipped with low-fuel internal combustion engines or battery powered power trains and can be adapted to keep up with advances in electric vehicle technologies. The initial investment includes tools and assembly from the US factory, where the final assembly of the vehicle will take place.

The contract is the first part of a multi-billion dollar project10 dollaryear-long effort to replace the postal delivery fleet, one of the largest in the world. The Correios fleet has more than 230,000 vehicles in all classes, including specially built and commercial vehicles ready for use (COTS). Approximately 190,000 deliver mail six, and usually seven, days a week to each US community. NGDV, along with other COTS vehicles, will replace and expand the current delivery fleet, which includes many vehicles that have been in service for 30 years.

It is estimated that the first NGDVs will appear on operators’ routes in 2023.

“As the American institution that unites our country, the US Postal Service can have a bright and modern future if we make investments today that will position us for excellence tomorrow,” said Postmaster General and USPS Chief Executive Officer Louis DeJoy. “The NGDV program expands our ability to handle more package volume and supports our carriers with cleaner and more efficient technologies, more amenities and greater comfort and safety as they deliver every day on behalf of the American people.”

NGDV vehicles will include air conditioning and heating, improved ergonomics and some of the vehicle’s most advanced technologies – including 360-degree cameras, advanced braking and traction control, airbags, a frontal and rear collision prevention system that includes visual , audible warning and automatic braking. The vehicles will also have greater load capacity to maximize efficiency and better accommodate the largest volumes of packages resulting from the growth of electronic commerce.

“The modernization of our fleet also reflects the Post Office’s commitment to a more environmentally sustainable vehicle mix,” said DeJoy. “As we operate one of the largest government civilian fleets in the world, we are committed to seeking short- and long-term opportunities to reduce our impact on the environment.”

The Postal Service awarded the Oshkosh Defense contract in accordance with the competitive policies for the acquisition of the Postal Service after extensive testing of prototype vehicles, evaluation of production proposals offered and discussions of technical specifications with the offerers.

The prize is an indeterminate delivery contract, an indeterminate quantity (IDIQ), which means that, after an initial dollar commitment, the Post Office will have the continuous ability to order more NGDV over a specified period of time, in this case, 10 years. Oshkosh Defense is evaluating which of its various manufacturing sites in the USA is the most suitable for potentially increasing the production rate of NGDV.

Video comments featuring Postmaster General Louis DeJoy and other Correios executives, and an image of the new NGDV is available at USPS Newsroom.

Correios do not receive taxes on operating expenses and depend on the sale of postage, products and services to finance their operations.

Watch: For US Postal Service media resources, including broadcast-quality video, audio and photos, visit the USPS Newsroom. Follow us on Twitter, Instagram, Pinterest and LinkedIn. Sign up for USPS Youtube channel, like us in the Facebook and enjoy our Postal blog posts. For more information about the Post Office, visit usps.com and facts.usps.com.

For reporters interested in speaking with a regional postal service public relations professional, visit about.usps.com/news/media-contacts/usps-local-media-contacts.pdf.

Contact: Kim Frum
[email protected]
usps.com/news

SOURCE US Postal Service

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