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Postal Service Delays Mail Truck Replacement Contract Again

December 01, 2020 by Jerry Hirsch, @Jerryhirsch

Already years behind schedule, the U.S. Postal Service announced another delay in its efforts to award a more than $6 billion contract to replace its fleet of aging mail trucks.

The Postal Service told Trucks.com that it expects to reach a contract with one or more of the teams bidding for the business in the federal government’s second fiscal quarter of 2021. That works out to the first quarter of next year.

Previously the agency said it would award the business early this year but then pushed it back to the end of 2020 because of the COVID-19 pandemic. It missed several targets for awarding the contract in 2019 and 2018.

“Amid continuing COVID-19 concerns, and in order to provide for capital investment activities and required approvals, the program schedule has been revised and a decision is now planned for quarter 2 of fiscal year 2021,” Kim Frum, a spokesperson for the Postal Service, said in a statement to Trucks.com on Tuesday.

Multiple teams of vehicle manufacturers once competed for the contract but many have dropped out over the years. Currently, there are three teams. They had a deadline to submit their proposals in July, at which time the agency said it would start to evaluate the plans and launch negotiations.

The Postal Service has said the contract could be worth more than $6 billion of business to build as many as 180,000 delivery vans. It also is looking at splitting the giant order between multiple parties.

The post office now uses about 140,000 Grumman Long Life Vehicles for its main delivery service. Manufactured from 1987 through 1994, they need to be replaced. A 2014 audit from the office of the USPS inspector general found that the current fleet was expected to only meet the delivery needs of the agency through the 2017 fiscal year.

The vehicles are prone to fires and they have become increasingly expensive to repair.

The three teams left competing for the contract are:

• Workhorse Group, a small Loveland, Ohio, electric truck builder, had teamed up with truck body maker VT Hackney. But it said VT Hackney has dropped out of the project, leaving Workhorse to continue on its own. Workhorse paid $7 million for intellectual property related to the truck and acquired the right to bid for the contract. It has a factory in Indiana. The company also owns 10% of Lordstown Motor Corp., an electric pickup truck startup in Lordstown, Ohio. It may tap Lordstown for manufacturing if Workhorse lands a large contract for the new mail trucks.
• Turkey-based Karsan, which makes commercial electric vehicles, teamed with long-time USPS supplier Morgan Olson of Sturgis, Mich. The team has offered a plug-in hybrid engine option for the new mail truck. Its truck would be built in the U.S.
• The third team, Oshkosh Corp., of Oshkosh, Wisc., and Ford Motor Co. of Dearborn, Mich., already have U.S. manufacturing facilities. They based their internal combustion engine entry on the Ford Transit cargo van.

Editor’s note: This story was updated with the name of the U.S. Postal Service spokeswoman who provided the statement at 3:51 p.m. EST.

 

Jerry Hirsch August 31, 2020
The earliest new mail delivery trucks will replace the U.S. Postal Service's aging and troubled fleet is January 2022, according to a new report by the service’s Office of the Inspector General.

32 Responses

  1. Todd Schwartz

    Who is your source? The last time the contact was delayed it was announced by the USPS not by Trucks.com

    Reply
      • Chad

        Who cares about trucks.com. plain and simple, all llv are horrible dangerous junk. Nothing but cold steal and tired engines. No safety at all.

    • Kerry Ewing

      Typical government operation, just use Ford or Dodge vans instead of spending a stupid amout of money to build a vechicle from scratch!!!!

      Reply
      • Joe reeser

        When’s the last time you saw a Ford or Dodge van with right hand drive?

    • James Clark

      The LLV had a Chevy S10 engine and a beefed up transmission from France I believe. I wonder if the fires are electrical in nature. If the new designs incorporate a lot of high tech, it would probably break down even more over 20 to 30 years.
      The eventual losers will protest, run to their congressmen, and seek ever increasing bid and proposal costs delaying production even longer.

      Reply
    • Jerry Hirsch
      Jerry Hirsch

      No, the USPS said that would be the first calendar quarter of 2021. They were very specific.

      Reply
  2. ?

    “the U.S. Postal Service announced another delay in its efforts to award a more than $6 billion contract to replace its fleet of aging mail trucks.”

    Does the USPS only makes announcements by way of trucks.com?

    Did they announce this anywhere else?

    Or did you contact the NGDV contract rep. every day, or have some type of agreement with them to get notified?

    Reply
    • Jerry Hirsch
      Jerry Hirsch

      I check with the press office frequently. We have been following this story for years. We might be the only news organization that asks.

      Reply
    • Jerry Hirsch
      Jerry Hirsch

      We asked and Kim Frum, the USPS spokesperson responded with a statement at 3:51 p.m. Eastern Standard Time.

      Reply
    • Jerry Hirsch
      Jerry Hirsch

      We have a standing inquiry about the program. We received an email from Kim Frum, the USPS spokesperson who responded with the cited statement at 3:51 p.m. Eastern Standard Time.

      Reply
  3. Trevor

    It’s interesting how the article was released at market close with no official PR from the USPS. The lack of an individuals’ name for your source brings doubt to the validity of your source.

    Reply
  4. Kevin Lee

    I hope that you are not paid by someone or organizations against Workhorse stock to wrote the above article. You should provide a specific source of the information received from the USPS Press Office, you should provide the personal name of USPS Press Officer that you received the information or link “the USPS is cited as source in article” as you stated replied to Paul, so all of the readers of your article can be verify the information then trust your above article.
    If it is just a made-up story from you, you should remove the article to void a legal challenge.

    Reply
      • Gary Roediger

        Jerry, Your seemingly infinite patience with these “workhorse” boys questioning the veracity of your information is off the charts amazing. Very commendable! Thanks for the WELL RESEARCHED articles.

      • Derek

        I agree with Gary.
        I have stock in Workhorse, but damn, these little bitches are annoying.

  5. Fento

    Thanks for your tight work regarding workhorse trucks, I have been reading great articles about usps in this site for many years

    Reply
  6. Max Power

    I guess I don’t get it…why is this article so impossible to believe ? Does the writer have a history of making shit up or what’s the deal?

    All as I know is whoever they choose, it should be an American company, making America vehicles, right here in America, & by American workers….. PERIOD.

    Reply
  7. John Chewning

    Why is a Turkish company; or any foreign company even under consideration.

    Reply
  8. J

    In most cases it is the carriers fault by overheating trying to get back or just not paying attention. Also their supervisors fault for telling them to keep going until the mechanic can get to them. Either case if there where some sort of accountability for neglect on the carriers part there would be less fires and less unnecessary repairs on them.

    Reply
    • Jerry

      J,
      First off, engine overheating doesn’t normally result in a fire. Engine damage? Sure. Fire? Not so much.
      Second, do carriers, with the encouragement of their supervisors, try to finish the route or at least get the truck back to the office? Sure, and you would too. You want to sit in a dead, un-air conditioned truck in August, or a dead cold truck in February? For potentially hours, cause let’s be honest, the low-bid truck maintenance contractor just isn’t in a hurry. Unpaid, cause you’re getting the route rating, not actual hours. (The supervisor is getting rated based on on-time delivery.)
      The fact is the LLV is past its LL, is uncomfortable and unsafe, is getting more expensive to keep running and needs to be replaced. Don’t try to lay that on the carriers or supervisors. They’re the ones that have suffered with the situation.

      Reply
  9. Lillian rosado

    I am still wait for packingefrom 4-4-21. And other 5-11-21. Still not get it pls let me know

    Reply

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