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Gov Agencies Choosing UPS, Fed Ex over USPS
Washington Free Beacon
UPS has received $122M in revenue since 2010; USPS $28.9M
The United States Postal Service’s (USPS) bottom line has been hit by the federal government itself as numerous agencies have increased their contracts with publicly traded companies instead of the Postal Service for their mailing and distribution services, the Washington Free Beacon has found.
The federal government spends hundreds of millions of dollars each year for these services, and the lion’s share of contracts has gone to United Parcel Service (UPS).
An analysis of records shows the government awarded contracts solely issued for mailing and distribution worth nearly four times as much to UPS as it did to USPS in the last three-and-a-half years.
USASpending.gov shows 25 federal agencies have contracted with UPS instead of the Postal Service, resulting in $122 million in revenue for UPS from 2010 to 2013 for mailing and distribution.
By comparison, the Postal Service received $29.3 million.
A review of contracts from federal agencies with UPS and another publicly traded company, Federal Express, shows that the government continues to award more contracts to them than it does USPS.
Federal Express was awarded $48.5 million in contracts for mailing and distribution from 2010 to 2013
A review of records shows that the federal government is relying on UPS more heavily. There were 358 contracts awarded to UPS by federal agencies in 2008. That number had increased to 925 contracts by 2012. Through the first six months of 2013, 635 contracts have been awarded to UPS.




F.D.R. in Hell
June 11th, 2013
BEWARE! When UPS becomes dependent on Federal contracts, they’ll cut them off and possibly nationalize them.
There’s a mackerel in the moonlight.
Menderman
June 11th, 2013
I have seen Fed Ex and UPS go to my local post office to pick up packages. The guy behind the counter said they hire them to do the overnight stuff because the USPS sucks at doing the fast stuff….he is a Viet-Nam vet, so I don’t ask much…he hates the government and I am scared he will go postal some day.
rjc
June 11th, 2013
I have had packages sent by UPS etc., but the final delivery done by USPS. But this is another matter and I suspect that gubmint employees’ stupidity is the cause of sending contracts to UPS, if not outright corruption
Ten Megaton
June 11th, 2013
Congresscrackers are probably invested in these companies.
F.D.R. in Hell
June 12th, 2013
@ rjc
The most expensive leg of a package’s trip is the Distribution Center to Front Door delivery. It’s a cost-cutting/time-saving measure to use USPS for the final leg.
h/t: Jimmy Hoffa, Sr.
Geoff C. The Saltine
June 12th, 2013
Is that a ice cream cart pulling a porta potty, or a modern day pony express. I don’t know what Mr postman is riding but I bet it cost over $25,000
Dadof3
June 12th, 2013
Between the pic and the fact that even the USPS saves money using a privately owned, competively managed company?
The wastefulness of Gov-think is illustrated quite well.
tenndon
June 12th, 2013
Hello! This is CHUM Change compared to the deficit runup by USPS.
But it shows how little confidence even the govment has in the post office.