The long process to design, engineer, and award a contract for the U.S. Postal Service’s (USPS) next-generation mail delivery vehicle (NGDV) has finally come to an end. The government has awarded Oshkosh Defense a contract to produce the Next Generation Delivery Vehicle for service. Oshkosh Defense is a a wholly owned subsidiary of Oshkosh Corporation (NYSE: OSK).
The NGDV project is the USPS’s first large-scale fleet procurement in three decades. Over the next 10 years, the contract allows for the delivery of between 50,000 and 165,000 new vehicles.
“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 & Chief Operating Officer, Oshkosh Corporation.
The new mail trucks will have multiple powertrain options, just like many passenger vehicles on the road today. There will be a battery electric vehicle (BEV) version that runs exclusively on electric power and a fuel-efficient low-emission internal combustion engine vehicles (ICE) variant.
Under the contract awarded today, USPS has committed to paying Oshkosh Defense $482 million as a first step toward the new vehicles’ production. The money will be used to finalize the production vehicle design and complete factory build-out, all of which is necessary before production gets underway. The process is similar to ones mass market vehicle manufacturers use.
“Our century-long history of delivering products to customers, 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 John Bryant, Executive Vice President, Oshkosh Corporation, and President, Oshkosh Defense. “Partnering with trusted suppliers, we have developed a purpose-built solution to support the current and future needs of the USPS,” Bryant concluded.
In addition to a new exterior and powertrain options, the NGTV also gets modern features and amenities like a rearview camera, walk-in cargo area, air condition, telematics, and a sliding cargo door. There’s also a host of safety technology and equipment including airbags, automatic front and rear braking, blind spot warning, a 360-degree camera, and forward collision warning.
Production of the next generation delivery vehicle is expected to begin in 2023.