NGDV vehicles will include air conditioning and heating, improved ergonomics and some of the most advanced vehicle technologies – including 360-degree cameras, advanced brake and traction control, airbags, a front and rear impact avoidance system that includes a visual, sound and automatic braking system. Vehicles will also have increased loading capacity to maximize efficiency and better adapt to higher parcel volumes due to the growth of e-commerce. “The USPS` attempts to defend this decision on cost grounds have been disconcerting, as the reason the industry is adopting electric fleets as soon as possible is precisely because it is now common knowledge that electric vehicles have a significantly lower total cost of ownership than gas-powered vehicles,” the complaint reads. “As the USPS` for-profit competitors acknowledge, the huge fuel and maintenance savings far outweigh the additional costs of charging infrastructure.” However, Workhorse said in its challenge to the contract that the USPS “put its thumb on Workhorse” and removed its prototype from consideration due to a “safety incident” caused by the error of a USPS test track pilot. “Oshkosh Defense is aware that Workhorse Group has filed a protest regarding the award of the contract for the next-generation delivery vehicle to Oshkosh by the U.S. Postal Service. While tenders are an integral part of the public procurement process, we do not comment on such procedures,” the company said in a statement. Behind the scenes, Workhorse faced further challenges with the postal contract that drove up its shares. Workhorse officials told the Enquirer that the company`s officers and board members had not done anything inappropriate. They do not intend to verify insider inventory sales. They believe that all transactions were carried out under a legal mechanism that delegates investment decisions to third parties, as part of a predetermined plan that protects the company`s representatives from accusations of illegal insider trading. Such agreements, called 10b5-1 plans, allow insiders to arrange future trades triggered by selected dates, target prices, or other measures in advance. The Cincinnati suburban company was once considered the favorite to win all or part of a huge $6 billion contract to replace thousands of vehicles in the U.S.
Postal Service`s aging fleet. Investors bought electric vehicle mania and also bought shares in an Ohio-related company, Lordstown Motors. Insiders sold more shares — nearly 215,000 later this month — even as Workhorse`s confidential trading went into trouble. They sold for months to a week before the disappointing announcement of the postal contract. The six selected suppliers include AM General, Karsan, Mahindra, Oshkosh, Utilimaster and VT Hackney, and the contract award is $37.4 million. Suppliers also have the discretion to work with other suppliers or subcontract, and some are expected to do so to develop finished prototypes. “Instead of applying the brakes correctly or `parking` the vehicle, the driver jumped out of the vehicle and hurtle down a slope and drove into a ditch. Instead of acknowledging the driver`s obvious mistakes, the USPS not only dishonestly blamed Workhorse, but also took this incident as its `figurehead` for which it could not have awarded the contract to Workhorse, “the complaint reads. In contrast, Irwin, the analyst at Roth Capital, called the USPS contract decision “shocking” in a March note to investors. Now that Oshkosh has bought Pratt & Miller (from the global glory of racing and defense contracts), there is an endless supply of design and engineering expertise that simply does not exist at Workforce.
How can the USPS perform a two-year test and evaluation and then award the entire contract to a supplier who has the worst operating and maintenance costs but promises to be able to deliver a superior electric van at some point in the future if the USPS gives it money for research and development? In the lawsuit, Workhorse`s only description of its initial response to the loss of contract was: “Several aspects of the announcement were surprising.” Oshkosh said he would continue his contract despite Workhorse`s complaint. In July 2020, the company`s insiders cashed in more than 2.5 million of their shares over several months to a week before the postal service detonated the bomb that Workhorse would not receive part of the huge contract. “While tenders are an integral part of the public procurement process, we do not comment on such procedures,” Alexandra C. Hittle, director of global marketing and communications at Oshkosh Defense, said in an email to The Verge. “We are proud that the USPS has chosen Oshkosh Defense to meet the requirements of the NGDV program, and we look forward to putting these high-performance vehicles in the hands of the postmen.” A number of contracts are expected to approach $6 billion. The protest against the offer triggers a high-profile court battle over the contract for the next-generation mail truck and could affect how and when these vehicles switch to electric power — something President Biden has said he wants across the entire federal fleet. The contract could be worth more than $6 billion in total. It can deliver over 10 years from 50,000 to 165,000 a mixture of internal combustion and battery electric vehicles. Stay up to date by subscribing to one of our newsletters. Electric car maker Workhorse Group called the U.S.
Postal Service`s decision to award a huge contract for the next postal car to a rival “arbitrary, capricious and without rational basis” in a lawsuit. Here is the complaint. storage.courtlistener.com/recap/gov.uscourts.uscfc.43940/gov.uscourts.uscfc.43940.28.0.pdfCertainly Workhorse`s point of view, but if any of the allegations prove to be true, the contract should be repealed. Following a rigorous evaluation process, the postal service today awarded contracts to six major suppliers who will produce a total of 50 prototype vehicles as part of the next phase of the NGDV acquisition process. However, the replacement of the current postal vans has only become a more urgent issue. Built by defense contractor Grumman, many so-called long-life vehicles have exceeded their life expectancy. This led them either to collapse, cost the USPS a fortune, or in some cases catch fire. .
