David P. Hendel from our Government, Regulatory and Compliance team at Culhane Meadows PLLC recently compiled the Top 150 U.S. Postal Service Suppliers in fiscal year 2021. See below for the link to the list!
Multiple news sources have featured this important resource:
David P. Hendel’s legal career began as an Honors Attorney in the U.S. Postal Service General Counsel’s office, where he reviewed contracts, advised procurement officials, and litigated disputes. Entering private practice, he advised companies on issues arising under civilian and defense agency contracts, including matters of contract administration, performance, and compliance. David has represented hundreds of contractors, from Fortune 50 companies to small businesses, on a wide range of matters including: bid protests, contract administration and interpretation, claim preparation and litigation, terminations, fraud investigations and False Claims Act matters. He frequently writes articles and presents seminars on postal contracting topics. He also created the www.postalcontractor.com website.
Transportation companies again dominate the top rankings in the newly issued list of the top 150 U.S. Postal Service suppliers for fiscal year 2021. Eight of the top 10 contractors – and 14 of the top 20 – provide transportation services or equipment.
The Postal Service spent $18.4 billion on outside suppliers in FY 2021, an increase of $2.3 billion over last year. About half the total spend – $9.6 billion – went to transportation, an $800 million increase over last year. The Postal Service also spent $2.9 billion on supplies and services, and $5.8 billion on rent, utilities, and other facility expenses.
The top USPS supplier is again FedEx Corporation, which received nearly $2.2 billion. FedEx transports mail by air for the Postal Service and has stood atop the list since 2002. FedEx’s current air cargo network contract with the Postal Service is set to expire on September 29, 2024.
The Postal Service’s second largest supplier is trucking company 10 Roads Express, with $540 million in revenue. 10 Roads Express traces its roots back to 1946, and over the years has acquired a group of contractors that formerly operated independently. The company operates from 36 terminals across the country, has scheduled deliveries in 49 states, and operates thousands of company-owned tractors and trailers.
EnergyUnited Service, which pays the Postal Service’s telecommunications and energy bills, ranked third at $400 million. Victory Packaging is the only other non-transportation supplier in the top ten. The company makes the packaging products that USPS provides to mailers and is seventh on the list.
OEM Systems LLC, which provides cargo vans, pick-ups, and other vehicles, appears for a second time in the top ten and ranked fifth, at $335 million.
The other transportation companies in the top ten are trucking company Eagle Express Lines, Inc., ranked fourth, at $367 million; parcel giant United Parcel Service of America, Inc., ranked sixth at $290 million; truck broker XPO Logistics, Inc., ranked eighth at $202 million; air carrier United Airlines, Inc., ranked ninth at $197 million; and postal-dedicated transportation supplier Postal Fleet Services, Inc., ranked tenth at $196 million.
In all, the top ten suppliers accounted for $4.97 billion in FY 2021, about one-quarter of the agency’s total spend for the year. The top 150 suppliers accounted for $11.8 billion, 64 percent of the agency’s spend.
“The Postal Service’s main job is delivering physical items, so smart transportation and logistics will always be key to the Postal Service’s future,” said David Hendel, a partner at Culhane Meadows PLLC and member of the firm’s Government, Regulatory, and Compliance Group. “But what works in theory doesn’t necessarily work in practice,” he said. For example, the Postal Service recently abandoned its Dynamic Route Optimization program, which on paper was promising but when instituted led to higher costs and supplier disputes.
While transportation is vital, the Postal Service also depends upon a vast data processing and communications network to process and deliver 425 million mail pieces per day. The agency also maintains over 31,000 retail offices – that’s more than twice as many retail outlets as Starbucks.
Hendel has compiled the Top 150 list annually since 1999. The list is based on data received in response to Freedom of Information Act requests and seeks to consolidate entries for affiliated companies.
The complete list of the Top 150 suppliers is available at www.postalcontractor.com, a website Hendel created that provides key background information on postal contracting. The list is also available on the Culhane Meadows website.
Download a PDF of this article which includes the top 10 suppliers HERE.
Download a PDF of the entire list HERE.
The foregoing content is for informational purposes only and should not be relied upon as legal advice. Federal, state, and local laws can change rapidly and, therefore, this content may become obsolete or outdated. Please consult with an attorney of your choice to ensure you obtain the most current and accurate counsel about your particular situation.
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