Source: David P. Hendel
MARCH 9, Washington D.C. —Transportation companies continue their reign atop of the list of the Top 150 U.S. Postal Service Suppliers in fiscal year 2020, with eight of the top ten USPS suppliers providing transportation services or equipment. Of its more than $16.1 billion procurement spend in FY 2020, $8.8 billion–more than half–went to transportation suppliers.
The top USPS supplier is again Federal Express, which received over $2.2 billion–$174 million more than in FY 2019. FedEx transports mail by air for the Postal Service and has stood atop the list since 2002. FedEx’s current air cargo network contract with the Postal Service continues for another four years, expiring on September 29, 2024.
The only two non-transportation companies in the top ten were EnergyUnited Service and Victory Packaging. EnergyUnited pays the Postal Service’s telecommunications and energy bills and was the agency’s second largest supplier. Victory Packaging, which makes the packaging products that USPS provides to mailers, is 7th on the list.
A newcomer to the list, OEM Systems LLC, filled the 8th spot. OEM provides cargo vans, pick-ups, and other vehicles. Eagle Express Lines, Postal Fleet Services and United Parcel Service round out the rest of the top ten USPS suppliers. All combined, the top ten suppliers earned $4.7 billion, about $500 million more than the prior year and almost one-third of USPS’s total procurement spend.
Transportation suppliers also dominate the 11th through 20th rank, filling seven of those positions. Accenture Federal Services is the top information technology provider, receiving $176 million in USPS payments. United Airlines was the top commercial airline, gaining $166 million.
Member David P. Hendel with Culhane Meadows, in Washington, D.C., has created a website regarding postal contractors at www.postalcontractor.com.