USPS SELECTS OSHKOSH DEFENSE FOR NEXT GENERATION DELIVERY VEHICLE FLEET

Rhea-AI Summary

The U.S. Postal Service has awarded Oshkosh Defense an indefinite delivery, indefinite quantity (IDIQ) contract to produce the Next Generation Delivery Vehicle (NGDV), marking USPS's first large-scale fleet procurement in over 30 years. The contract involves delivering between 50,000 and 165,000 vehicles over a decade. Oshkosh is set to receive $482 million to initiate engineering efforts and production preparations. The vehicles will include zero-emission battery electric and low-emission internal combustion options, contributing to a more sustainable USPS fleet.

Positive

• Award of IDIQ contract for 50,000 to 165,000 vehicles enhances Oshkosh's revenue potential.
• $482 million allocated for initial engineering and production setup bolsters financial outlook.

Negative

• None.

The U.S. Postal Service (USPS) announced today that it has awarded Oshkosh Defense, a wholly owned subsidiary of Oshkosh Corporation (NYSE: OSK), an indefinite delivery, indefinite quantity (IDIQ) contract to produce the Next Generation Delivery Vehicle (NGDV), the USPS’s first large-scale fleet procurement in three decades. The competitively awarded contract allows for the delivery of between 50,000 and 165,000 vehicles over a period of 10 years.

“Oshkosh operates with unparalleled commitment to those who depend on our products and services to build, protect and serve communities around the world. We are honored to have been selected by the USPS to support their important work by manufacturing American-made Next Generation Delivery Vehicles that will connect every home and business across the United States for decades to come,” said John Pfeifer, President & Chief Operating Officer, Oshkosh Corporation.

Oshkosh Defense will manufacture both zero emission battery electric vehicles (BEV) and fuel-efficient low-emission internal combustion engine vehicles (ICE), upgrading the USPS fleet to be increasingly sustainable. Under the contract announced today, the USPS has committed to pay Oshkosh Defense $482 million to initiate engineering efforts to finalize the production vehicle design, and for tooling and factory build-out activities that are necessary prior to vehicle production.

“Our century-long history of delivering products to customers, operating in some of the most demanding and severe conditions on the planet, uniquely positions us to bring exceptional reliability, safety, and maintainability to USPS’s Next Generation Delivery Vehicles,” said John Bryant, Executive Vice President, Oshkosh Corporation, and President, Oshkosh Defense.

“Partnering with trusted suppliers, we have developed a purpose-built solution to support the current and future needs of the USPS,” Bryant concluded. Production of the next generation delivery vehicle is expected to begin in 2023.

About Oshkosh Defense

Oshkosh Defense is a global leader in the design, production and sustainment of best-in-class military vehicles and mobility systems. As a pioneer of combat-ready vehicle solutions, Oshkosh develops and applies emerging technologies that advance troop safety and mission success. Setting the industry standard for sustaining fleet readiness, Oshkosh ensures every solution is supported worldwide throughout its entire life cycle.

Oshkosh Defense, LLC is an Oshkosh Corporation company [NYSE: OSK].

Learn more about Oshkosh Defense at www.oshkoshdefense.com.

About Oshkosh Corporation

At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipme

FAQ

What contract was awarded to Oshkosh Defense by USPS?

Oshkosh Defense received an IDIQ contract from USPS to produce the Next Generation Delivery Vehicle.

How many vehicles will Oshkosh produce under the USPS contract?

Oshkosh will produce between 50,000 and 165,000 vehicles under the USPS contract.

What is the value of the initial payment from USPS to Oshkosh?

USPS has committed to pay Oshkosh $482 million to start the engineering and production process.

When is the production of the Next Generation Delivery Vehicle expected to begin?

Production of the Next Generation Delivery Vehicle is expected to begin in 2023.

What types of vehicles will Oshkosh manufacture for USPS?

Oshkosh will manufacture zero emission battery electric vehicles and low-emission internal combustion engine vehicles.