USPS Says FedEx Deal Still on Track

Share this content:
The U.S. Postal Service said yesterday that it is still looking forward to implementing a seven-year shipping deal with air express carrier FedEx. The announcement followed last week's news that the USPS' Office of Inspector General is investigating the $6.3 billion, no-bid deal.

Under terms of the contract, FedEx will provide air transportation for certain postal services. The agreement is expected to take effect in late August. A second seven-year deal with the USPS allows FedEx to place self-service drop boxes in every U.S. postal location. Both agreements were reached in January.

The USPS will begin testing FedEx's transportation network in mid-June, said Paul Vogel, vice president of network operations at the agency.

"We are right on track with the transportation agreement [with FedEx]," Vogel said. "This is a tremendous agreement for us, and I know our customers are going to appreciate it starting Aug. 28."

The Office of Inspector General is looking into whether postal service managers misinformed their governing board by claiming that the shipping deal with FedEx would save the agency more than $1 billion.

The USPS' Board of Governors asked the office to review the contract after it was approached by Emery Worldwide Airlines, which claims that the deal would cost the USPS much more than the agency has indicated and would reduce service levels, according to a source familiar with the situation.

Vogel said yesterday that the shipping deal with FedEx would result in "a reduction in our costs and a stabilizing in our cost structure."

FedEx began installing its drop boxes at post offices in North Carolina in March and in Florida last week under its agreement with the USPS.


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above