The U.S. Postal Service has awarded Oshkosh Defense, a contract to produce the Next Generation Delivery Vehicle, the USPS’s first large-scale fleet procurement in three decades.
The 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 and fuel-efficient low-emission internal combustion engine vehicles, upgrading the USPS fleet to be increasingly sustainable.
Under the contract announced, the USPS has committed to pay Oshkosh Defense $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.
Production of the next generation delivery vehicle is expected to begin in 2023.