In a recent article by CBS News, Culhane Meadows’ Washington, D.C. office partner David Hendel provides insight on USPS highway contracts.
Here are a few excerpts from David’s interview:
Postmaster General Louis DeJoy’s former company landed a $5 million highway-shipping contract last month with the United States Postal Service.
DeJoy continues to own a multimillion-dollar stake in XPO Logistics as of early October. The $5 million deal is the first regular contract for a postal route that XPO Logistics has signed with the USPS in more than a year. XPO’s last highway contract with the USPS was in December and was temporary. The one before that was signed in July 2019.
XPO’s contract — to move mail for the next 18 months between Norfolk, Virginia, and Evansville, Indiana — has not been previously reported. The contract was negotiated in August and disclosed in mid-October as part of a quarterly update to a database of USPS suppliers.
An XPO spokesperson told CBS MoneyWatch in a statement: “Public records show the U.S. Postal Service has awarded more than 1,600 HCR contracts since June 15 through the government’s open, competitive bidding process. XPO bid on several of those contracts, and was awarded one. More than three dozen HCR contracts awarded to other companies during this timeframe are higher than XPO’s contract, according to these public records.”
In August, amid the congressional hearings, XPO put out a statement that said DeJoy no longer had any role at the company, and that its postal contracts make up a small portion of the company’s overall revenue. Whatever contracts it does have, the company said, were awarded based on merit and by “career USPS procurement officers.”
$3 billion patchwork of USPS highway contracts
The Postal Service maintains a spreadsheet of regular highway routes it has contracted to outside shippers on its website, which is updated quarterly. David Hendel, a partner at Washington, D.C., law firm Culhane Meadows, who specializes in government contracts, says the patchwork of highway contracts make up about $3 billion of the annual $12 billion the Postal Service doles out to outside contractors each year.
The complete article can be found here.
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