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Fleet Modernization: E-Transit Vehicle Acquisition Update

Audit Reports

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    Fleet Modernization E-transit Cover
Sep
16
2025
Report Number:
25-063-R25
Report Type:
Audit Reports
Category: Transportation / Vehicles

Fleet Modernization: E-Transit Vehicle Acquisition Update

Background 

A key facet of the U.S. Postal Service’s Delivering for America plan is a nearly $10 billion investment to modernize its aging delivery vehicle fleet. The Postal Service plans to acquire 106,480 vehicles between fiscal years (FY) 2023-2028, 9,250 of which are E-Transits — a left-hand drive (LHD), battery electric vehicle (BEV). We previously reported that the Postal Service acquired 1,076 E-Transits between March 2023 and June 2024 (78 percent below its original plan). This audit provides an update to that report.

What We Did 

Our objective was to assess the status of the Postal Service's acquisition of E-Transit delivery vehicles. We reviewed related policies, milestones, and documentation; observed vehicles; and met with Postal Service Headquarters and local officials.

What We Found 

The Postal Service acquired 7,465 E-Transits as of June 2025 (81 percent of the planned total), but acquisitions were 1,785 behind plan. This occurred primarily because of the limited number of delivery units with complete BEV charging infrastructure and compatible LHD routes to effectively use the vehicles. As such, the Postal Service worked with the supplier to delay further receipt and stored over 6,000 E-Transits at holding lots — some as long as 14 months — pending deployment to available units. While the Postal Service has a strategy to deploy all E-Transits over the next two years, this situation poses financial and operational risks. We estimate deployment delays will postpone over $78 million in expected savings between FYs 2025 and 2026. Developing a short-term mitigation strategy, including an analysis of related costs and assessing other options — such as divestment — could help reduce the impact of storing E-Transits in holding lots.

The Postal Service also incurred incremental staffing, equipment, and transportation-related costs associated with storing E-Transits in holding lots. We found E-Transit storage management issues at some facilities related to inconsistent data, preventative maintenance, battery charging, deployment, and contracting services due to gaps in management oversight and related controls and communication. We estimate questioned costs of $37,058 from February to April 2025.

Recommendations and Management’s Comments 

We made six recommendations to address the issues identified in the report, and Postal Service management agreed with five and disagreed with one. We will pursue the disagreed recommendation through the formal audit resolution process. Management’s comments and our evaluation are at the end of each finding and recommendation

Report Recommendations

# Recommendation Status Value Initial Management Response USPS Proposed Resolution OIG Response Final Resolution
1

Develop a short-term strategy for mitigating the impacts of storing E-Transits in holding lots that would include an analysis of related costs (in other words, acquisition, staffing, maintenance, transportation, and so forth) and assessment of other options such as divestment.

Open $0 Agree
2

Correct inconsistencies in the Fleet Management Information System (FMIS) for E-Transits in holding lots and implement internal controls to periodically assess the accuracy of E-Transit vehicle data in FMIS.

Open $0 Agree
3

Correct inconsistencies in preventative maintenance inspections and battery maintenance for E-Transits in holding lots and implement internal controls to periodically assess the consistency of these activities.

Open $0 Agree
4

Correct deficiencies associated with E-Transit deployments and implement internal controls to periodically assess compliance with related deployment procedures.

Open $0 Agree
5

Develop strategies and controls to ensure local holding lot staff are appropriately using applicable service contracts.

Open $37,058 Disagree
6

Develop strategies to enhance communication of policies and procedures to E-Transit local holding lot staff, particularly related to the consistency of Fleet Management Information System data, preventative maintenance inspections, battery maintenance, and deployment.

Open $0 Agree