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.
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