Procurement

Report: USPS Can't Afford to Replace Aging Fleet

June 20, 2014

Photo via Wikimedia.
Photo via Wikimedia.

The United State Postal Service lacks the resources to modernize its aging fleet of delivery vehicles by replacing the vehicles or adding technology such as GPS tracking, according to a report by the Office of the Inspector General.

During fiscal year 2012, the USPS spent more than $906 million on maintenance for its fleet of nearly 212,000 vehicles that is one of the largest in the country. About 75% are Grumman LLVs (long-life vehicles) that have a 24-year lifespan. Some of the LLVs have been in use for as many as three years beyond that.

By using fleetwide GPS tracking, the agency could gain a better understanding about how the vehicles are being used, which could extend their lifespan.

The USPS developed a fleet replacement plan in 2011 that called for acquiring 25,000 vehicles at a cost of $500 million starting in fiscal-year 2017. The plan lacked details such as vehicle specifications and was never implemented, according to the OIG.

Earlier this year, the USPS received approval to purchase 3,509 vehicles to meet a contractual rural carrier vehicle committment.

The OIG urged the USPS to continue acquiring vehicles in the short term and formalize a long-term plan to replace the fleet with specifications for the next generation of delivery vehicles.

Read the full report here.

Comments

  1. 1. Steve Kibler [ June 23, 2014 @ 12:28PM ]

    We only see six paragraphs here so I’m sure there are many pages to this story and not wanting to throw USPS's fleet manager in front of the bus but these numbers doesn’t imply very sound fleet management. With 212K vehicles scattered across 51 states, resolving this issue may make USPS one of the world’s most challenging fleets to fix. My assumption is either a finance person is managing their fleet or the fleet manager is given an annual budget figure w/o any kind of authority to offer a financial fleet plan. Replacing 25K vehicles is 12%. I know of several 20+ year old delivery vehicles at our local Post Office so targeting 25K vehicles appears to be a desperation move by USPS to simply keep from starving. This strategy may feed them for a day when what they need is someone to teach them to fish.

  2. 2. Nicholas [ June 23, 2014 @ 03:01PM ]

    The USPS is guilty of continuing to use far overpriced and smoky, polluting old truck based SUVs in US communities where they could use inexpensive electric cars like the Leaf or even bicycles like most other countries do.

    They deserve to go out of business or at least not pollute on weekends.

  3. 3. Randy [ June 24, 2014 @ 04:29AM ]

    The USPS needs to look into transitioning their fleet to a leasing situation.

    Lets get these 25 year old vehicles off the road and a transition to a PEHV or an all electric vehicle. There are plenty of for profit organizations that have made the switch.

  4. 4. Luke [ June 24, 2014 @ 08:01AM ]

    Hmmm. Guess you better not get any mail at all Nicholas, all those trees they cut down for envelopes & paper. You honestly think a leaf or any such vehicle would be able to handle the payload of mail????

  5. 5. Rodger [ February 17, 2015 @ 10:31AM ]

    The USPS needs to seek advise from a Fleet Maintenance professional. The Idea of replacing the entire fleet all at one time or over a 5 year period is bad business. They should be replacing about 8480 units per year, at that rate they would never have a unit over 25 years old. $906 Million to maintain the fleet is outrages, that's $4300 per unit per year. The Grumman LLV units are cookie cutter vehicles. They are built the same so USPS should be buying parts in quantities to negotiate pricing to keep costs down. Any successful trucking company or delivery service replaces a set percentage of their units every year to keep their fleet from aging and keep maintenance cost down. USPS maintenance needs to be outsourced to private repair facility's. The labor rates should be negotiated to save money. I don't know but I can assume the american people are supporting a maintenance program staffed by very high payed union employees. Give this work to the private sector and save the tax payers some money.

  6. 6. Joseph C Segari Jr [ September 09, 2016 @ 09:48PM ]

    Your private shops you speak of provide subpar repair and take no accountability for poor workmanship. Your dealership techs make plenty more money than a Union PROUD employee. I see the result of privatization every day and its not a pretty sight...

  7. 7. Joseph C Segari Jr [ September 09, 2016 @ 09:49PM ]

    Your private sector shops are subpar . I see it every day.

  8. 8. Joseph C Segari Jr [ September 09, 2016 @ 09:51PM ]

    And by the way.......the USPS operates on NO TAXPAYERS MONEY. I guess you're jealous because you're not good enough to get a job with us. Shows your level of intelligence

 

Comment On This Story

Name:  
Email:  
Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

FleetFAQ

Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All

Recent Topics

What tool do you use to calculate residual value on heavy equipment? Thanks,

View Topic

I am in the early stages of creating a central fleet maintenance department. Would anyone be willing to share an org chart for their...

View Topic

Fleet Documents

974 Fleet Documents (and counting) to Download!

Sponsored by

The National Truck Equipment Association (NTEA) is an association formed to provide technical information and a range of member services for companies and organizations involved in the work truck marketplace.

Read more