WASHINGTON February 23, 2021 / PRNewswire / – The US Postal Service announced today that it has awarded a 10-year contract to Oshkosh, WI, based on Oshkosh Defense, to produce a new generation of US-built mail delivery vehicles that will drive the most profound modernization of the USPS fleet in three decades.
The landmark investment is part of a soon to be released plan developed by the Postal Service to transform its financial performance and customer service over the next 10 years through significant investment in people, technology and infrastructure as it seeks to become the preferred position. service provider to the American public.
Below the initial of the contract $ 482 million investment, Oshkosh Defense will complete the production design of the Next Generation Delivery Vehicle (NGDV) – a purpose-built right-hand drive vehicle for mail and parcel delivery – and assemble 50,000 to 165,000 units in 10 years. The vehicles will be equipped with fuel-efficient combustion engines or battery-powered electric powertrains and can be retrofitted to keep up with advances in electric vehicle technologies. The initial investment includes factory tools and build-out for the US manufacturing facility where final vehicle assembly will take place.
The contract is the first part of a billion-dollar 10annual effort to replace the fleet of the postal service, one of the largest in the world. Postal Service’s fleet has more than 230,000 vehicles in every class, including both purpose-built and commercial-off-the-shelf (COTS) vehicles. In each American community, about 190,000 deliver mail six, often seven days a week. 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 expected to appear on flight paths in 2023.
“As the American institution connecting our country, the US 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 to handle more parcel 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 feature air conditioning and heating, improved ergonomics and some of the most advanced vehicle technologies – including 360-degree cameras, advanced braking and traction control, airbags, front and rear collision avoidance system with visual, audio warning and automatic braking. The vehicles will also have greater cargo capacity to maximize efficiency and better accommodate larger parcel volumes due to the growth of e-commerce.
“The modernization of our fleet also reflects the Postal Service’s commitment to a more environmentally sustainable mix of vehicles,” said DeJoy. “Operating one of the largest civilian government fleets in the world, we are committed to pursuing short and long-term opportunities to reduce our impact on the environment.”
The Postal Service awarded the Oshkosh defense contract in accordance with the postal service’s competitive procurement policy after extensive testing of vehicle prototypes, evaluation of offered production proposals and discussions of technical specifications with the providers.
The award is an indefinite supply, indefinite quantity contract (IDIQ), meaning that after an initial dollar commitment, the mail has the option to order more NGDVs over a fixed period, in this case 10 years. Oshkosh Defense is evaluating which of their various US manufacturing sites is best suited to potentially increase the production rate of the NGDV.
Video reactions with Postmaster General Louis DeJoy and other postal executives, and an image of the new NGDV are available at the USPS Newsroom
The postal service does not receive tax dollars for operating expenses and relies on the sale of stamps, products and services to fund its operations.
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SOURCE US Postal Service
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