U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery Vehicle Fleet

The U.S. Postal Service announced today it awarded a 10-year contract to Oshkosh, WI, based Oshkosh Defense, to manufacture a new generation of U.S.-built postal delivery vehicles that will drive the most dramatic modernization of the USPS fleet in three decades.

The historic investment is part of a soon-to-be-released plan the Postal Service has developed 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 for the American public.

Under the contract’s initial $482 million investment, Oshkosh Defense will finalize the production design of the Next Generation Delivery Vehicle (NGDV) — a purpose-built, right-hand-drive vehicle for mail and package delivery — and will assemble 50,000 to 165,000 of them over 10 years. The vehicles will be equipped with either fuel-efficient internal combustion engines or battery electric powertrains and can be retrofitted to keep pace with advances in electric vehicle technologies. The initial investment includes plant tooling and build-out for the U.S. manufacturing facility where final vehicle assembly will occur.

The contract is the first part of a multi-billion-dollar 10-year effort to replace the Postal Service’s delivery vehicle fleet, one of the world’s largest. The Postal Service fleet has more than 230,000 vehicles in every class, including both purpose-built and commercial-off-the-shelf (COTS) vehicles. Approximately 190,000 deliver mail six, and often seven, days a week in every U.S. community. The 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.

The first NGDVs are estimated to appear on carrier routes in 2023.

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

The NGDV vehicles will include air conditioning and heating, improved ergonomics, and some of the most advanced vehicle technology — including 360-degree cameras, advanced braking and traction control, air bags, a front- and rear-collision avoidance system that includes visual, audio warning, and automatic braking. The vehicles will also have increased cargo capacity to maximize efficiency and better accommodate higher package volumes stemming from the growth of eCommerce.

“Our fleet modernization also reflects the Postal Service’s commitment to a more environmentally sustainable mix of vehicles,” DeJoy said. “Because we operate one of the largest civilian government fleets in the world, we are committed to pursuing near-term and long-term opportunities to reduce our impact on the environment.”

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

The award is an indefinite delivery, indefinite quantity (IDIQ) contract, meaning that after an initial dollar commitment, the Postal Service will have the ongoing ability to order more NGDV over a fixed period of time, in this case,10 years. Oshkosh Defense is evaluating which of their several U.S. manufacturing locations is best suited to potentially increase the production rate of the NGDV.
https://about.usps.com/newsroom/national-releases/2021/0223-multi-billion-dollar-modernization-of-postal-delivery-vehicle-fleet.htm

Related Posts

Savvas Launches Magruder’s American Government Interactive, the New “Always Up-to-Date” Edition of the Premier High School Program

Taking a groundbreaking approach to delivering government and civics curriculum, Savvas Learning Company today introduced two new, innovative social studies programs, Magruder’s American Government Interactive and Civics Interactive, that are developed to provide students with the most up-to-date content and current events. Magruder’s American Government Interactive © 2023, the new edition of its premier high school program, is the first social studies curriculum in the country with continuously updated digital resources, complementing a foundational textbook. Civics Interactive © 2024, the newest and first all-digital civics curriculum in the marketplace, is designed to actively promote civic engagement for young adults in grades 6-12.

Gap Inc.: An Update on Our European Business: Partner to Amplify Strategy

Gap has what it takes to win again. With strong brand awareness and a large, active customer base, we are focusing on harnessing the power of Gap brand in asset-light ways. Going forward, we will look to transform our business model through partnerships that grow and amplify our global reach. Today, we shared with our team that we are starting a strategic review of options for our Gap business in Europe. One of the options being explored is the possible closure of our company-operated Gap stores in the United Kingdom, France, Ireland and Italy at the end of the second quarter in 2021. In addition, we are reviewing our warehouse and distribution model and our Gap and Banana Republic company-owned e-commerce operations in Europe. A possible outcome is the closure of our EU distribution center in Rugby.

Kohl’s Doubles Donation for Hurricane Harvey Relief Efforts to $1 Million to American Red Cross

Kohl’s announced it will double its earlier announced donation to support relief efforts in response to the severe weather impacting Texas and the Gulf Coast, for a total of a $1 million cash donation to the American Red Cross. In addition, Kohl’s will provide an estimated $1 million in financial support to Kohl’s associates who have been significantly impacted by the storm. “The destruction of the hurricane and its aftermath has continued to escalate day by day,” said Kevin Mansell, Kohl’s chairman, CEO and president. “We feel compelled to increase our donation to the Red Cross to help families across Texas and the Gulf Coast during this time of great need.” Click Read More below for additional detail.
Back To Top
×Close search
Search