Earlier this year, the U.S. Postal Service awarded funding for the first overhaul of its delivery vehicle fleet in 30 years.
The winning bid, from Wisconsin-based Oshkosh Defense, could be worth $6 billion over more than 10 years — a substantial windfall for a company known more for its military vehicles.
But the decision also came at the expense of Workhorse Group, the Cincinnati commercial electric vehicle company whose all-electric bid lost out to Oshkosh. The company’s stock price reportedly plummeted nearly 50% in the wake of the announcement.
Nearly four months later, Workhorse is suggesting the contract was awarded improperly — and it’s taking the Post Office to court.
Exact details of the company’s challenge are under wraps, at least for the time being. The company officially challenged the bid in the U.S. Court of Federal Claims, where the filing is under seal. Reuters reports that a judge is likely to disclose some details of the complaint in coming weeks.
For now, Workhorse said only that it would provide updates “when appropriate and as permitted” under a non-disclosure agreement.
Oshkosh, which declined comment on the filing, did not match Workhorse’s all-EV contract bid. The new mail trucks will be a combination of gas-powered and electric vehicles, with the gas ones able to be retrofitted with electric systems down the road.
USPS officials reportedly hope to make the majority of its fleet electric within 10 years, but the Biden administration has called for funding to electrify the entire roughly 650,000-vehicle fleet.
The Post Office told Reuters that the Oshkosh contract was proceeding as scheduled with the first new trucks scheduled to enter the fleet in 2023.
