When you buy a car, how long do you tend to keep it? A few years? Six or seven? Ten? For the U.S. Postal Service, it’s a long, long time. The backbone of its delivery fleet – more than 200,000 vehicles – is the right-hand-drive Long Life Vehicle (LLV), which has an expected service life of 24 years. But almost 70 percent of the LLVs on urban and rural routes are now between 25 and 32 years old, and maintenance costs are high.

The combined effect of aging vehicles, a growing number of delivery points, and a changing mail mix increases the need for new delivery vehicles to meet the current operational demands of six-days-a-week delivery. That’s why the Postal Service began planning in Fiscal Year (FY) 2015 for acquisition of a new, Next Generation Delivery Vehicle (NGDV) to start replacing the current fleet beginning in FY 2018 through FY 2019. But due to frequent changes to the NGDV acquisition timeline, the planned deployment date is now scheduled for January 2022.

Our auditors looked at the Postal Service’s acquisition strategy, which uses modeling of current and projected operational data. As noted in their recent report, they found that the strategy was generally adequate, but significant implementation delays arose. USPS management told our auditors that the original timelines were not sufficient and more time was needed to develop and test the prototypes. For example, issuing the Request for Proposal to suppliers for the NGDV prototype vehicle took six months longer than initially planned due to extensive stakeholder briefings.

We recommended the Postal Service’s Vice President, Delivery Operations, coordinate with the Acting Vice President, Engineering Systems, to perform a schedule risk assessment of the NGDV production timeline to evaluate the risk of further delays and determine whether modification to the mixed vehicle acquisition strategy is warranted. Management agreed.

Do you remember when the Postal Service last transitioned to a new vehicle in the late 1980s/early 1990s? What did you think then of the Jeep being replaced by the LLV? What do you remember when you saw the first Postal Service LLV?

Comments (261)

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  • anon

    The $6 Billion contract needs to be split between Ford and Workhorse. Many areas in the Northern areas that use salt on roads and have more rural areas will need Ford and Oshkosh vehicles with combustion engines due to extreme cold, snow, and salt (corrosion). EV vehicles are not field-tested yet.

    Oct 16, 2020
  • anon

    EVs are much cheaper to manage, and they can be capable of what gas vehicles do. Salt on roads affects all cars, so whatever they do to those cars can be done here.

    Oct 16, 2020
  • anon

    The Office of the Inspector General report says the USPS is spending $700m/year to keep the old LLVs running. A huge amount of money could be saved if the delivery span is shortened. So instead of receiving the NGDVs over 5 years why not credit a competitor if it can deliver in a shorter period of time? Specifically if Workhorse could team with Lordstown Motors to harness the massive production capacity of the Lordstown plant the entire production run could be delivered in a much shorter period of time thereby saving the USPS billions of dollars.

    Oct 15, 2020
  • anon

    Why is this a matter of contemplation or debate still? The money is allocated and the EV is obviously the best choice for long-term cost and environmental impact. Pick Workhorse -- the one EV in the race and already approved for California and Federal Highway and Safety -- and get this going already!!

    Oct 15, 2020
  • anon

    I bought a Nissan Lead 3.5 years ago and gave up buying cas. Having driven 36000 miles, my cost in terms of additional electricity is between $150 and 200 per year. My monthly gas bill was $250 a month. My gas car required oil, tires, brakes, and the occasional other repair. I estimated these at $1000 per year. Total savings due to electric ownership. I estimate ($250 times 11 times 3.5 years or $8500 and $3500 from repairs) $12000. Oddly, my car has also increased in value another $1000 ( I bought it used). For America, please buy an electric truck. An EV will save you money in fuel and repair terms. The lack of noise pollution, carbon pollution, and less down time are all extras. It may cost you more upfront, but operationally it will save you money every day. Some say the batteries will fail in five years. Batteries can be "tuned up" for a marginal amount of money = about 10% of the battery cost - every 2-5 years, for the cost of one catalytic converter.

    Oct 15, 2020
  • anon

    How did you estimate $1,000 per year for owning a gas car? If you drove 36,000 miles in 3.5 years, you do about 10,000 miles a year. Thats 2 oil changes. A set of tires lasts about 40,000, and guess what, electric cars wear out tires as well. Brakes? Brakes last about 40,000 miles as well, and on average cost $400 to replace. So that's $100 a year, plus 2 oil changes, which on average would be $50/each. So $200 a year for maintenance? By the way I own a Prius and plan to go for a Chevy Volt/Tesla next, but don't romanticize electric cars. They are still in early stages and the technology has a long road ahead.

    Oct 16, 2020
  • anon

    USPS could invest in half their fleet as Workhorse Electric vans and have the deliveries over the next two years then ask GM to work with workhorse to provide updated tech vans after that to fulfill the rest of the order replacing all of the fleet (all meaning semis too)

    Oct 15, 2020
  • anon

    I have spoke to Tesla owners who say their mileage is cut in half around 40° and the colder it gets the faster their battery goes away. Why spend that kind of money on a vehicle that can’t be used year round? EVs are not that great for the environment never mind the mining process to get the products to make the battery. What are you going to do with the battery when it’s service life is up? Electricity doesn’t come out of the air in a lot of places something is burned to create it. Maybe a natural gas engine would be better.

    Oct 13, 2020
  • anon

    I hope the US Postal service is considering Workhorse trucks. This is a great company that makes some of the most durable and easy to service electric vehicles. Many industry analysts are predicting we are at a tipping point where the use of electric vehicles will have immediate economic savings - both in costing less than gas trucks up front and also in long term savings. Also, it would be such a great optic for the post office to be going green.

    Oct 13, 2020
  • anon

    Workhorse is the obvious choice when it comes to longevity and low maintenance of the new USPS Fleet. Decision is long overdue.

    Oct 13, 2020
  • anon

    When will the new delivery vehicle contract be announced and who will make the announcement?

    Oct 13, 2020
  • anon

    How come we dont have a date? There needs to be a deadline for an announcement. Taxpayers need our money used more efficiently, Not just, "oh we will get to it sometime.. "

    Oct 12, 2020
  • anon

    Taxpayers? Usps is self funded.

    Oct 13, 2020
  • anon

    Is the 8.1 billion dollars from the federal goverment to buy USPS a new fleet of vehicles the "self funded" that you speak of?

    Oct 14, 2020
  • anon

    The process of fleet replacement should be transparent and each and every phase be public. The US Postal Service is notorious for incompetence and non cost effectiveness. They have however become a household name, the goal of every corporation in the US. Except "Going Postal" isn't what any enterprise aspires to, conversely it is indicative of failed labor management. This process of fleet conversion has been mulled over since 2014 and now we have a new "Assessment" to postpone implementation to 2022. If the USPS was a real business it would be out of business. Particularly in view of Amazon reducing delivery cost to zero for everything, in the midst of the paradigmn shift to email. The USPS needs to become nimble and decisive or obsolete.

    Oct 12, 2020
  • anon

    Who makes the announcement about the winner of the contract ?

    Oct 10, 2020
  • anon

    Who will be the first to know who wins the vehicle contract ?

    Oct 09, 2020
  • anon

    The first people who will know about the contract winner will be the billionares. They always get the closed door info so they can buy up the shares before the stock goes up. Than by the time the little guy gets in on it the shares have already gone up 30, 40, 50%. Always getting screwed by the big shots. They actually probably already have the information.

    Oct 18, 2020
  • anon

    Just saw a new USPS delivery truck delivering mail to my neighborhood.I looked pretty closely to see what it was. Imagine my surprise to find that it was a Mercedes. I thought the postal service had to buy a U.S. made product. Surprise?

    Oct 08, 2020
  • anon

    The Mercedes is not the permanent replacement for the LLV. It is a stop gap vehicle to fill immediate needs of the usps for a right hand drive vehicle

    Oct 12, 2020
  • anon

    So the good folks assembling these vans in Charleston, SC aren't American? Did you know Mercedes just invested $500m in that plant, right here in the USA, to build vans?

    Oct 09, 2020
  • anon

    Workhorse is the way to go. All EV, long-term savings.

    Oct 07, 2020
  • anon

    i totally agree, when is the contract going to be awarded?????

    Oct 09, 2020
  • anon

    It's time to show that you ARE concerned about your carriers' safety. Replace those death-traps while reducing emissions and repair costs. We are tired of seeing endless revisions to planned deployment dates. Please pick a date and make it soon. Thank you!

    Oct 07, 2020
  • anon

    The longest lasting, lowest maintenance, All American delivery truck designed thus far is Workhorse C series. If I needed a delivery truck, I would buy one of theirs.

    Oct 07, 2020
  • anon

    Please don’t give contract award to Karsan or Ford. Although they look much better and more reliable in long run. However, many of us invested large amount of money on Workhorse. If you don’t give workhorse award, many of us will lost money, we have a lot of call option on workhorse. So please please please I beg you don’t give the award to Ford or Karsan.

    Oct 06, 2020
  • anon

    I can't imagine someone like you, who has stakes in other beneficiaries will come to defame the investors of Workhorse while pretending you are also one of the investors. Workhorse will win at least a part of the contract because USPS is required to purchase 75% electric / zero vehicle and electric vehicles are good to the American Society. How do you know Ford's or Karsan's vehicles are much better and more reliable? I suspect that you are just a short seller of the stock.

    Oct 13, 2020
  • anon

    Not to be disrespectful. Al of that sounds terrible the way you worded everything. Also as a workhorse investor. And no offense I got in early and I probably have more shares than a lot of you do. $.... I agree with, I hope they go with workhorse, however the reason they’re going to go with workhorse is because all of the major components that are put in place. Such as they’re the only electric vehicle, the only zero emissions, the only one to past federal transportation regulations, the only one with soon to be functionally factory. Lordstown is 9 million square ft facility, 10 minutes from my house in Lordstown Ohio. That’s why people like us invested in the company. Not to beg for a contract which we are going to be getting a part of because of the true facts and bottom line. Please don’t make us look like beggars and cry baby’s . It is the governments slow politics, election time,etc

    Oct 06, 2020
  • anon

    agree

    Oct 14, 2020
  • anon

    Hey Rex 6800 shares workhorse baby. So. Yes . All in. Workhorse all the way.

    Oct 13, 2020
  • anon

    Agreed. Workhorse has the best solution for the post office's requirements. That's why it should be awarded the contract or a significant part of the total contract.

    Oct 13, 2020
  • anon

    Pretty sure he was sarcastic to the optimism of workhorse investors. In 1995 we called this a joke.

    Oct 12, 2020
  • anon

    My sentiments as well

    Oct 08, 2020
  • anon

    I support Extended Warranties , and back up cameras, and a local dealership shop for discounts. I don’t see electric trucks being special made, if all that why not Solar!

    Oct 05, 2020
  • anon

    I am curious about the high repairs , is that because of their miles are over 100,000? Electric cars would be hard too, because of the design being reversed. I wonder how I can help?

    Oct 05, 2020
  • anon

    It's a no brainer going electric is the future. Full American made is what the tax payers want. Workforce should be awarded the entire contract. God bless the United States of America!!

    Oct 05, 2020
  • anon

    Hi. I do think it’s necessary to go EV the CA is running by 2035 no gasoline or diesel Van and other state will fallow soon , the world by service to save money also change , go electric is more efficient, maybe the contract cut by 25% to Ford and 75% by Workhorse, it should be announced fast , the USPS has to tell the US how they run in the future, thx. Dieter

    Oct 07, 2020
  • anon

    Announce the winner already. You want things to get better then give the NGVD contract to workhorse it’s the right thing to do

    Oct 05, 2020
  • anon

    Hello I invested a lot of money in work horse because /American company all EV they have worked so hard for this contract thank you have a great day.

    Oct 04, 2020
  • anon

    It's without question that if hydrogen fuel cells exploded as prolifically as these antiquated gasoline vehicles, they would have been recalled long ago. Since the next generation vehicles will likely be in service for a very long time, the only sustainable solution would be to use only zero emission electric and hydrogen models. Post offices should also install hydrogen refueling and EV charging stations that will not only bring green hydrogen to every zip code and absolve range anxiety, but also present a large opportunity to bring USPS out of debt.

    Oct 04, 2020
  • anon

    The USPS is stubborn. I would also like to see them change with the times, but everything still feels and looks outdated. Unlikely they will go with electric given their poor track record. They don't seem to want to save money. They are more than 9 BILLION in debt. They want the same ol same ol. When pigs fly the USPS will change it's ways and become amazing.

    Oct 03, 2020
  • anon

    Remember when it was said the usps was exploring alternative fuel tech in 2007, specifically workhorse and another company. Where is our update? https://i.postimg.cc/9Q2gmBrL/original-248006861.png

    Oct 03, 2020
  • anon

    I believe out of the current bidders on the new contract, workhorse is the clear winner. They are an American company that will produce their vehicles here in America, already have an electric last mile vehicle that works, and has an impressive drone capability that can help the USPS expand their delivery services. This will help reduce carbon emissions on a national level, lower the cost of fuel since electricity is cheaper than gasoline, and bring new potential to the USPS that was never had before. Furthermore it’s an investment in American technology, the American worker, and the American economy all with American dollars.

    Oct 03, 2020
  • anon

    100% AMERICAN 100% ELECTRIC

    Oct 03, 2020
  • anon

    It’s an easy decision, Workhorse must be awarded at least half the contract as the only 100% EV, US based player. Otherwise you’re doing a huge disservice to the taxpayers that are paying for this project.

    Oct 02, 2020
  • anon

    I would be a shame if the USPS went with outdated technology as opposed to bringing on a company that will not only be efficient and environmentally safe, but also bring on new innovations with drones.

    Oct 02, 2020
  • anon

    If USPS wants to save money - continue the 6 days a week delivery to businesses - then MWF deliver mail to 1/2 of the residents then on TTS deliver to remaining houses. America does not need junk mail 6 days a week. Yes - the packages can go 7 days a week if the price is right !

    Oct 02, 2020
  • anon

    Hello, I am a little bit upset at the continued usps truck fires, there are numerous horrifying stories in the news and documented on video. One that was on fire beside a gas station. Another recently that destroyed mail in votes. And very shocking one that was on fire barrelling down the road while on fire, the driver having to jump out ! Is the USPS not worried about the huge possible liability, danger to Americans, and overall embarrassment? What is USPS planning on doing about this situation? Thank you

    Oct 02, 2020
  • anon

    Dear Sirs/Madams millions of us are waiting to hear/read about the USPS contract. Besides the poor quality service is on the road and the extra cost the tax payers are suffering, many investors are really waiting for you to send a sign. I understand the challenge you might have but a small sign is due. Let's not forget that assigning the contract to Workhorse is the best deal for the environment and the long term cost for maintenance.

    Oct 01, 2020
  • anon

    I couldn’t agree more. Workhorse is the answer. How much more do you need to see. It’s being endorsed by our president and Vice President. It’s time. Award it all ready

    Oct 05, 2020

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