The U.S. Postal Service spends billions of dollars every year on contracts for goods and services ranging from transporting mail across the country to mowing the grass at the local post office.
The U.S. Postal Service has almost 80,000 rural delivery routes serviced by some 133,000 rural letter carriers. For some of those routes, USPS provides the vehicle; for others, the carrier uses a private vehicle and receives a maintenance allowance from the Postal Service for wear and tear. In fiscal year (FY) 2020, the Postal Service paid out nearly $583 million in maintenance allowances — a rise of $71 million, or 13 percent, over FY 2015.
You’ve maybe heard a lot lately about the U.S. Postal Service’s efforts to buy new delivery vehicles and are curious about how many they will purchase. Do you wonder how USPS makes these and other major purchases? It turns out the Postal Service has its own internal contracting policies and procedures, called Supplying Principles and Practices (SP&P).