As part of our postal industry practice, we annually compile a list of the Top 150 USPS suppliers based on data received under the Freedom of Information Act.

In FY 2017, USPS spent $13.9 billion on outside purchases and rental payments, an increase of $181 million over last year.  The biggest increase went to the top 10 USPS suppliers. That group received a total of $3.9 billion, up $400 million from last year and accounting for 28 percent of the Postal Service’s total spend. The Top 150 suppliers received $9.2 billion, about two-thirds of the agency’s total spend. Only 81 suppliers collected revenues exceeding $25 million in 2017.

As it has since 2002, Federal Express Corporation lands atop the list, this year with $1.61 billion in revenues—about a $68 million drop from its 2016 earnings. FedEx carries package and letter mail for the Postal Service. FedEx’s air cargo network contract with the Postal Service has been extended several times, and the latest extension takes it to September 29, 2024.

Continue Reading Top 150 U.S. Postal Service suppliers get more in FY 2017

Top 150 first page FY 2015Transportation and technology companies dominate the top 10 spots on the list of the Top U.S. Postal Service Suppliers for FY 2015.  Federal Express Corporation again tops the list, a position it has held since 2002. Overall, the Postal Service spent $12.5 billion on outside purchases, about half of it on transportation.

FedEx, now in the third year of a seven-year air cargo network contract, received nearly $1.4 billion in revenue, a 3 percent drop from last year. Package giant United Parcel Service is also among the agency’s top suppliers, earning $154 million in postal revenues and moving up from No. 12 to No. 11.

Other transportation-related companies in the top 10 include trucking company Salmon Companies, Inc. (No. 4, $229 million); Victory Packaging, logistics and distribution services provider for ReadyPost and other packaging supplies programs (No. 5, $212 million); commercial airline United Airlines, Inc. (No. 6, $197 million); and auto-parts supplier Wheeler Bros., Inc. (No. 9, $175 million). Not far behind are trucking company Eagle Express Lines, Inc., No. 12 ($140 million); cargo airline Kalitta Air, LLC, No. 15 ($97 million); and commercial airline Delta Air Lines, Inc., No. 16 ($93 million).

Technology-related companies on the list start with EnergyUnited Electric Membership Corporation, which provides telecommunication and energy billing services. EnergyUnited is again the Postal Service’s second-largest supplier with $440 million in revenue, most of which is paid out to other companies. At No. 3 is Honeywell International, Inc., which received $273 million under its contract to provide 225,000 Mobile Delivery Devices (MDD). Letter carriers use the MDD to scan mail and packages.

HP Enterprise Services, LLC, a provider of computer equipment, ranks No. 7 with $192 million in revenue, about $20 million more than last year. Accenture Federal Services, which provides enterprise technology and consulting services to the agency, is ranked No. 8 with $188 million. International Business Machines Corporation (IBM) and AT&T Corporation again placed in the Top 20. EMC Corporation, which recently won a Postal Service contract to provide information storage and management services, has already cracked the Top 20 with $81 million in postal revenue.

Rounding out the Top 10 with $159 million in revenue is Northrop Grumman Corporation, which operates the Postal Service’s central repair facility in Topeka, Kansas.

David Hendel, a partner at Husch Blackwell, has compiled annual lists of the top Postal Service contractors since 2002, including these lists from 2010 – 2014.

Contractors will have more forms to fill out, and possibly some explaining to do, when the recently issued Executive Order on Fair Pay and Safe Workplaces is fully implemented in 2016. The Executive Order requires offerors to disclose whether they have been found to have violated, within the past 3 years, any of 14 different labor laws.

Covered laws include:  Fair Labor Standards Act, Occupation Safety and Health Act, Davis Bacon Act, Service Contract Act, Americans with Disabilities Act, and a host of others. Violations of equivalent state laws must also be reported.

An offeror with violations will be provided an opportunity to disclose steps it has taken to correct the violations or improve compliance. The procuring contractor officer will take this into account in determining the offeror’s responsibility.  The contractor will need to update its disclosure every six months.

Agencies are also required to ensure that contractors (and their subcontractors) provide their employees with “paycheck transparency,” providing a document to each employee that shows the hours worked, overtime hours, pay, and any additions or deductions made. Contractors must also state in writing if an individual is considered an independent contractor and not an employee.

These requirements apply to contracts and subcontracts valued at $500,000 or more. GSA is charged with developing a single website for contractors to use in meeting these new reporting requirements.

For contracts (and subcontracts) valued at $1 million or more, contractors may not require that their employees arbitrate claims relating to Civil Rights violations, sexual assault, or harassment. (Once such a claim has arisen, the parties can mutually agree to arbitrate the claim.)  This restriction, however, does not apply to employees who are covered by a Collective Bargaining Agreement.

The Executive Order is effective now, but the reporting requirement is not expected to begin until 2016, after the development of FAR regulations and clauses. Since the disclosure form has a 3-year look back period, violations that occurred in 2013 would be subject to the reporting requirement.

Contractors need only report adjudicated labor law violations:  a civil judgment, arbitral award, or administrative merits determination that the contractor violated a covered labor law. Settlements of alleged labor law violations are not reported. The Executive Order thus places further pressure on contractors to settle such claims rather than risk a reportable violation.

Thumbnail image for Cover from Top 150 FY 2012 USPS suppliers.jpgFedEx was the U.S. Postal Service’s largest contractor in fiscal year 2012 in a list of the agency’s Top 150 suppliers compiled and released today by Husch Blackwell’s Postal Service Contracting practice group. This marks a decade of Federal Express Corporation holding the No. 1 spot on the list. The next largest USPS supplier is military mail shipper Kalitta Air. Six of the Postal Service’s top ten suppliers served the agency’s transportation needs. The list is compiled annually by David P. Hendel, a partner in the firm whose government contracts practice focuses on Postal Service contracting matters.

Continue Reading Top 150 U.S. Postal Service contractors in fiscal year 2012

Christiansted Post Office - St. Croix - Virgin Islands.jpgContractors are entitled to recover consultant and attorney costs reasonably incurred in preparing, pricing, and negotiating a change order under federal government contracts, including U.S. Postal Service contracts. That’s the holding in Tip Top Constr., Inc. v. Donahoe, 695 F.3d 1276 (Fed. Cir. 2012). The court overturned a Postal Service Board of Contract Appeals decision that had erroneously limited the contractor’s recovery of these costs. End result: if an agency changes your contract (whether by unilateral direction or constructive change), your request for an equitable price adjustment may include reasonable consultant and attorney costs.

Continue Reading Consultant and attorney costs are recoverable under change proposals

Husch Blackwell’s Postal Service Contracting practice group today released its list of the top 10 U.S. Postal Service suppliers for fiscal year 2011. For the ninth straight year FedEx claimed the No. 1 spot. Another air carrier, Kalitta Air, Inc., which transports military mail bound for Iraq and Afghanistan, claimed the second spot. The list is compiled by David P. Hendel, a partner in the firm who has served clients’ postal contracting needs for 30 years. 

Continue Reading Top 150 U.S. Postal Service Contractors in FY 2011