Oshkosh Defense Wins $482M USPS Vehicle Fleet Contract
February 24, 2021
U.S. Postal Service 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
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
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.
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
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.