Sunday, October 25, 2020

Postal Service awards $5 million contract to Postmaster DeJoy's former company, XPO


https://www.cbsnews.com/news/usps-contract-xpo-logistics-postmaster-general-louis-dejoy-former-company/?fbclid=IwAR1edz6_TudYtH3fxnACc5O-_B1hzySazaNXEmTu2c3RSV2KIrif2WJwC0M

By Stephen Gandel
October 24, 2020 / 9:31 AM / MoneyWatch

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. 

The Postal Service will pay XPO $3.3 million annually to manage its route between the two cities, which are roughly 700 miles apart. The USPS database shows the contract has one of the highest annual rates out of more than 1,600 contracts the Postal Service initiated with outside firms in its most recent quarter, which is the first full quarter DeJoy has served as head of the agency.


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