Vehicle Parts Pricing

In fiscal year (FY) 2020, the Postal Service used about 255,000 delivery vehicles to distribute mail to 160 million delivery points across the nation. While about $292 million was spent on vehicle parts through 16 suppliers, the Postal Service spent about $190 million (65 percent) with two primary consignment vehicle part suppliers.These suppliers are contracted through national ordering agreements for the sale of vehicle parts through consignment with a period of performance from 2007 to 2050. The agreements also include a most favored customer pricing clause which allows the Postal Service to obtain an equal to or lower unit price for vehicle parts provided to the suppliers’ other customers.Our objective was to assess if the management of Postal Service vehicle parts agreements is consistent with pricing requirements.