If you could save a lot of money by changing the way you were planning to make a sizeable, expensive purchase, would you?
At age 21+, the current fleet of USPS Long Life Vehicles (LLVs) is aging out of service. Out of the total 212,000 postal vehicles on the road, the Postal Service plans to replace up to 180,000 LLVs with the “Next Generation Delivery Vehicles (NGDVs).”
The Postal Service is working with vehicle suppliers to design new vehicles whose core features would be the same as the current LLVs. The NGDVs would accommodate more space for packages as well as advances in technology and other key features, and cost up to $6.3 billion.
In the September 28, 2015 Issue Brief by Securing America’s Future Energy (SAFE), the report found the Postal Service could save almost $2 billion and improve the safety of its delivery vehicles. It could accomplish that by buying a mixed fleet of off-the-shelf vehicles that are slightly modified for postal routes and terrains instead of a one-time purchase of customized delivery vehicles slated to last 20+ years. The report came about as a response to the USPS ongoing search for a Next Generation Delivery Vehicle.
SAFE hired Keybridge LLC, an economic policy research firm, to conduct the analysis. Keybridge and SAFE found the “total cost of ownership of a fleet composed of a variety of off-the-shelf vehicles would be significantly less than one based around a single, custom-built vehicle manufactured exclusively for USPS.” Further, the report stated that turning over the fleet every 10-12 years would allow the Postal Service to “take advantage of the latest vehicle safety features and ensure the Service remains relevant in a rapidly changing market environment.”