USPS Renews Air Contract with FedEx

By Eric Katz

April 24, 2013

The U.S. Postal Service has renewed its contract with FedEx to provide air transportation service for priority and express mail. The contract will last seven years and is valued at $7.5 billion.

“The Postal Service conducted a competitive procurement for the transportation of domestic mail products by air,” USPS said in a statement, “incorporating new service performance requirements and improved contract terms and conditions.”

Upon completing this review, USPS officials determined FedEx proposed the best services at the best price. FedEx’s existing contract with USPS is set to expire in September.

“FedEx Express will continue the outstanding service that we have provided to the USPS for the past 12 years under this new agreement,” David J. Bronczek, president and chief executive officer of FedEx Express, the FedEx subsidiary overseeing the USPS contract, said in a statement . “This contract provides enhanced value and additional flexibility allowing the USPS to respond to possible changes.  We look forward to continuing our successful business relationship with the USPS.”


By Eric Katz

April 24, 2013

http://www.govexec.com/contracting/2013/04/usps-renews-air-contract-fedex/62746/