Contract Between Oshkosh Corporation and U.S. Postal Service Could Be in Jeopardy

Saturday, February 5th, 2022 -- 9:00 AM

(WBAY) A contract between the Oshkosh Corporation and the U.S. Postal Service could be in jeopardy.

The contract calls for billions of dollars to be spent on building both electric and gas powered delivery trucks, but Wednesday the Biden administration pushed back on the deal, saying it doesn’t go far enough to combat climate change.

It was nearly a year ago when the U.S. Postal Service announced that it signed a contract with Oshkosh Corporation to build up to 165,000 Next Generation Delivery Vehicles over the next decade.

However since that announcement there’s been a ton of scrutiny, with the White House advising the Postmaster General in a letter dated February 2nd that the environmental review was “flawed,” and the EPA finding the “analysis to be deficient.”

The agency also points out that only 10 percent of the vehicles will be electric, which isn’t enough considering the postal service accounts for almost a third of the entire government fleet.

The Biden administration eventually wants the entire federal fleet to be powered using clean energy. The company is also facing criticism from the union for moving production to South Carolina.

Feel free to contact us with questions and/or comments.