House Oversight Committee demands release of $6B USPS vehicle contract

The House Oversight Committee is demanding that the U.S. Postal Service (USPS) release a contract with a private company for a new delivery vehicle fleet that is reportedly worth up to $6 billion.

Oversight and Committee Chairwoman Carolyn MaloneyCarolyn MaloneySchumer, Gillibrand call on Cuomo to resign How two controversies collided for Cuomo Nadler, NY Democrats call on Cuomo to resign MORE (D-N.Y.) sent a letter to Postmaster General Louis DeJoyLouis DeJoyWatch live: Postmaster General DeJoy testifies before House panel Prepaid postcards going to every household in Canada to boost ‘meaningful connection’ USPS announces next phase of organizational changes MORE on Friday voicing several concerns about potential interference and asking for documents relating to a contract with Oshkosh Defense.

The USPS is contracted to purchase up to 165,000 new fuel efficient or electric postal vehicles.

USPS announced the deal with the Wisconsin-based company in late February, under which it paid a $482 million initial investment. The Postal Service said in a statement that the contract was the first part of a multi-billion dollar, 10-year effort to replace its delivery fleet.

According to Maloney, contract was a “surprise announcement” and marked the end of a “highly secretive” selection process that lasted six years. 

In her letter, Maloney voiced concerns that the vehicles would not be fuel efficient. The New York lawmaker noted that part of President BidenJoe BidenPentagon takes heat for extending Guard’s time at Capitol Booker to try to make child tax credit expansion permanent Sullivan says tariffs will not take center stage in talks with China MORE‘s plan to combat climate change is to transition to a fully-electric fleet. 

Maloney wrote that Oshkosh submitted a prototype with a gasoline engine despite prototypes from competitors incorporating electric powertrains. The initial announcement claimed that Oshkosh’s vehicles would be fuel efficient or contain electric powertrains.

However, Maloney noted that DeJoy told the committee in a hearing last month that only 10 percent of the initial order for the fleet would be electric.

Maloney further voiced concerns about the contract, pointing to a report from Bloomberg News, which alleges that an unknown party purchased $54.2 million worth of stock in Oshkosh the night before the deal was announced.

Maloney demanded documents by March 26.

“These reports raise concerns about the Postal Service’s selection process and contract award for the Next Generation Delivery Vehicle program,” Maloney wrote. “A thorough review is warranted to ensure the award process is free from undue influence and potential interference.”

The news comes amid support from Maloney for a bill from Rep. Jared HuffmanJared William HuffmanDemocrats debate fast-track for infrastructure package Lawmakers unveil measure to give Postal Service B for electric vehicles Democrats don’t trust GOP on 1/6 commission: ‘These people are dangerous’ MORE (D-Calif.) to allocate $6 billion to the Postal Service and require that at least 75 percent of its new fleet be electric or zero-emissions.

The Hill has reached out to DeJoy and Oshkosh for comment.