The US Postal Service (USPS) awarded Oshkosh Defense an indefinite delivery, indefinite quantity (IDIQ) contract to produce the Next Generation Delivery Vehicle (NGDV), the USPS’s first large-scale fleet procurement in three decades. The competitively awarded contract allows for the delivery of between 50,000 and 165,000 vehicles over a period of 10 years. Oshkosh Defense will manufacture both zero emission battery electric vehicles (BEV) and fuel-efficient low-emission internal combustion engine vehicles (ICE), upgrading the USPS fleet to be increasingly sustainable. Under the contract announced today, the USPS has committed to pay Oshkosh Defense US$482 million to initiate engineering efforts to finalize the production vehicle design, and for tooling and factory build-out activities that are necessary prior to vehicle production. “Partnering with trusted suppliers, we have developed a purpose-built solution to support the current and future needs of the USPS.” said John Bryant, executive vice president of Oshkosh Corporation and president of Oshkosh Defense. Production of the next generation delivery vehicle is expected to begin in 2023.
Workhorse Group (Workhorse), a new commercial electric vehicle (EV) startup, had bid for the contract and was a favorite of Wall Street speculators to land the deal. To the company’s credit, Workhorse was one of three finalists for the contract. Losing to Oshkosh Defense isn’t all too surprising considering its parent company, Oshkosh Corporation, has over 14,000 employees and is a much more established player in the field compared to Workhorse, which has less than 200 employees and very little revenue. However, Amazon, UPS, FedEx, and other transportation companies are in the market for environmentally friendly solutions to replace their existing fleets. Stiff competition for big contracts and a growing interest in upgrading fleets bodes well for newer companies like Workhorse or well-known players like Oshkosh looking to expand their offerings.
Oshkosh Defense designs, produces, and sustains military vehicles and mobility systems. As a pioneer of combat-ready vehicle solutions, Oshkosh develops and applies emerging technologies that advance troop safety and mission success. Oshkosh has a global service network to support assets throughout their life cycle. “Oshkosh operates with unparalleled commitment to those who depend on our products and services to build, protect, and serve communities around the world. We are honored to have been selected by the USPS to support their important work by manufacturing American-made Next Generation Delivery Vehicles that will connect every home and business across the United States for decades to come,” said John Pfeifer, president and COO of Oshkosh Corporation. “Our century-long history of delivering products to customers and operating in some of the most demanding and severe conditions on the planet uniquely positions us to bring exceptional reliability, safety, and maintainability to USPS’s Next Generation Delivery Vehicles,” said Bryant.