Oshkosh was off 2.1% at $106.52 at the close on Thursday.Įlectric-truck maker Workhorse, based in Loveland, Ohio, said it met Wednesday with representatives of the Postal Service to learn more about the agency’s surprise decision. Workhorse closed down 3.1% to $14.46 in New York trading. Workhorse shares have been reeling since the Wisconsin-based rival bidder was awarded the 10-year contract to build as many as 165,000 postal trucks. Oshkosh says its vehicles will be fuel efficient. He said they have an option to build more electric but that would cost billions of dollars more. Many of the current USPS vehicles only get about 10 miles per gallon, or worse gas mileage than a Humvee.īut only 10% of the Oshkosh mail-delivery vehicles are to be electric, Postmaster General Louis DeJoy told lawmakers the day after the Feb. The Postal Service operates 225,000 vehicles, making it the largest part of the federal fleet. But even that isn’t a guarantee.Ĭritics have said the postal contract doesn’t comport with Biden’s order for the government to transform its fleet into clean-energy vehicles.
Its best hope may lie with a change in the service’s governing board proposed by President Joe Biden. Postal Service process and from there can go to federal court, according to experts in contracting. Workhorse will likely turn first to an internal U.S. The company itself forecast a “prolonged process” Thursday as it considers challenging Oshkosh Corp.’s win in the contest to build a next-generation fleet to replace the Postal Service’s decrepit, polluting mail trucks.
Postal Service due to regulations designed to protect the integrity of government bidding and keep politics out. faces a tough road to overturn its loss of a $6 billion contract award to build trucks for the U.S. “While bid protests are a normal part of the government contracting process, we do not comment on such proceedings,” an Oshkosh Defense spokeswoman said.Workhorse Group Inc. Postal officials did not comment on the lawsuit but have said the agency expects the new trucks will be deployed in 2023. “Workhorse’s vehicle, by contrast, is already electric and production ready,” the suit says. The suit also claims that the Postal Service’s initial payment of $482 million to Oshkosh Defense is allowing the firm to complete design work it should have completed earlier. The suit says that Workhorse - not Oshkosh Defense - has a record of producing electric-powered vehicles. The lawsuit alleged that the truck Oshkosh Defense used in prototype testing is not the same vehicle that it is now planning to produce at a South Carolina plant. The 59-page lawsuit alleges that the Postal Service’s secretive evaluation process was flawed from the outset because the agency “put its thumb on the scale” against Workhorse. The Oshkosh Defense contract is an agreement for the company to produce a delivery fleet of 165,000 trucks. Democratic lawmakers in Congress have been talking about giving the USPS $8 billion for the trucks and the needed infrastructure to manufacture them. There is also the huge cost of building electric charging stations at post offices across the country. The $6 billion figure Linn’s has reported previously is an estimate of other added costs, such as building a new truck plant and contracts with other firms for components. The $3.1 billion is the value Workhorse put on the truck contract alone.
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