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FedEx signs new 7 year contract worth 10.5 billion with USPS
Posted On: Apr 24, 2013

FedEx signs new 7 year contract worth $10.5 billion with USPS

USPS Press Release
Air Cargo Network Contract Award to FedEx

WASHINGTON – On April 23, 2013, the United States Postal Service awarded Federal Express Corporation (FedEx) a seven-year Air Cargo Network contract to provide domestic air transportation service for Priority and Express Mail. The current contract with FedEx ends in September 2013, and the new contract will begin in October 2013.

The Postal Service conducted a competitive procurement for the transportation of domestic mail products by air, incorporating new service performance requirements and improved contract terms and conditions.

Following a rigorous evaluation of technical aspects, pricing, and other factors in the proposals, the Postal Service determined that the FedEx proposal represented the best value. The new contract benefits postal customers by providing service improvements, capacity flexibility, and other planned operational improvements. Based on estimated volumes the new agreement is valued at approximately $10.5 billion over the seven-year term.

The new contract allows the Postal Service to continue a successful business relationship with FedEx.

FedEX Press Release

MEMPHIS, Tenn., April 24, 2013 — FedEx Corp. today announced that its FedEx Express subsidiary has entered into a new express air transportation contract with the United States Postal Service. The current contract ends in September 2013, and the new contract will begin in October 2013.

Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS Express Mail and Priority Mail within the United States.

“FedEx Express will continue the outstanding service that we have provided to the USPS for the past 12 years under this new agreement,” said David J. Bronczek, president and chief executive officer of FedEx Express. “This contract provides enhanced value and additional flexibility allowing the USPS to respond to possible changes. We look forward to continuing our successful business relationship with the USPS.”

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