While the USPS is not subject to the FAR, giving it more discretion in its contracting approach, its status as a public agency “contributed to a cautious, time-intensive process. Image: Kosoff / Shutterstock.com
By: FEDweek StaffA combination of factors both inside and outside of the Postal Service’s control contributed to the delays in acquiring and deploying electric vehicles under its Next Generation Delivery Vehicle project, an inspector general report has said.
“The process to select, acquire, and deploy a custom vehicle took around six years longer than the Postal Service’s initial deployment schedule for the NGDV project. It took the Postal Service more than six years to select a supplier and more than three years from awarding the contract to receiving the first production vehicles,” it said.
One reason for that delay, it said, was the decision to pursue a custom-built vehicle. “At the time of the project’s inception, the Postal Service did not identify suitable off-the-shelf alternatives on the commercial market that met its needs for a right hand drive delivery fleet. Pursuing a custom vehicle is generally more complex and time-consuming than purchasing commercially available models.”
Also, at the outset the USPS was open to various types of alternative fuel vehicles, not limited to EVs. “An initial commitment to EVs could have reduced the time spent exploring different options and facilitated an earlier start on infrastructure installation, allowing for a quicker and smoother rollout of electric delivery vehicles,” it said.
In contrast, Amazon and DHL deployed a custom electric delivery van for their fleets within three to four years. However, they “had financial and regulatory flexibility and did not publicly source their suppliers,” instead directly partnering with EV suppliers, it said.
“Although such a direct investment strategy may theoretically be available to the Postal Service, legal, financial, and implementation factors might make this approach challenging to pursue in practice,” the report said.
It said that while the USPS is not subject to the Federal Acquisition Regulation, giving it more discretion in its contracting approach, its status as a public agency “contributed to a cautious, time-intensive process . . . it chose to prioritize transparency and due diligence by conducting an expansive competitive sourcing process. The agency also chose to develop and test 44 prototypes, significantly more than other organizations examined.”
Further, “Statutory limits to borrowing and lack of financial resources put the Postal Service at a financial disadvantage compared to private sector counterparts in funding large procurement efforts. This extended the timeline of EV acquisition and deployment, as the agency had to wait until it obtained sufficient funds to move forward with large scale fleet electrification.”
Lack of availability of charging stations meanwhile resulted in some facilities receiving vehicles but not being able to deploy them for a time. Factors contributing to that included “complex coordination with utilities, local governments, and construction companies; the Postal Service also used unrealistic project management schedules that could not be met at many facilities.”
The report added, “Despite delays, the Postal Service has already reduced its gasoline consumption and greenhouse gas emissions and expects the EVs to be cheaper to operate and more mechanically reliable than gas-powered vehicles.”
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