With commercial off-the-shelf vehicles readily available, cheaper, and already used in its fleet, why did the USPS decide to commission its new trucks from Oshkosh Defense?
Oshkosh Defense, which produces rather mean-looking tactical vehicles for the American military (and has never before produced a delivery van), was awarded a multibillion-dollar contract in February 2021 to produce the NGDV for the Postal Service over 10 years. The Post details the production nightmare that ensued. After repeated delays, setbacks, and quadrupling the minimum number of electric NGDVs, thanks to a generous $3 billion subsidy from the Inflation Reduction Act, Oshkosh had only delivered 612 of 35,000 e-NGDVs by November 2025, and only 2,600 of the 16,500 internal combustion engine NGDVs.
The Postal Service agreed to pay Oshkosh $77,692 per e-NGDV and $54,584 per NGDV in March 2023. To put these numbers in context, FedEx’s fleet of Mercedes-Benz Sprinter vans is considerably cheaper, costing $50,830 for the baseline 2026 Sprinter and $61,180 for the 2026 eSprinter. (The Sprinter debuted in 1995 and the eSprinter rolled out in 2019, two years before the USPS awarded its Next Generation Delivery Vehicle contract to Oshkosh.)
