Postal contracts awarded to DeJoy-run company were questioned in 2001 USPS audit
WASHINGTON — A two-decade-old audit of mail equipment transport contracts by the U.S. Postal Service’s inspector general found that a company previously run by Postmaster General Louis DeJoy was awarded multiple noncompetitive contracts by the Postal Service that may have cost consumers as much as $53 million more than if they’d been competitively bid.
The 2001 audit found that New Breed Logistics, a supply chain services provider based in North Carolina, was awarded more than $300 million in Postal Service mail equipment transport contracts that could have come in at a much lower price had they been shopped competitively to a range of vendors.
The audit, reviewed by NBC News, made it clear that the premise for awarding any noncompetitive contracts to a single vendor, such as New Breed, “did not fully meet Postal Service requirements” and “potentially exposed the Postal Service to cost and performance risks.”