Oshkosh’s (NYSE: OSK) defense arm has won a potential 10-year, indefinite-delivery/indefinite-quantity contract to manufacture between 50,000 and 165,000 Next Generation Delivery Vehicles for the U.S. Postal Service.
USPS will make an initial payment of $482 million to allow Oshkosh Defense to finalize the production design, factory build-out and tooling activities prior to vehicle production, the company said Tuesday.
Oshkosh Defense is set to kick off production of internal combustion engine-powered and battery electric vehicles for USPS in 2023.
John Bryant, executive vice president at Oshkosh and president of Oshkosh Defense, said working with trusted suppliers has enabled the company to come up with a purpose-built vehicle meant to support USPS’ current and future needs.