The Postal Service’s ‘Next Generation’ Electric Delivery Vehicles Cost $22,000 More Than Other Electric Vans

In 2014, the United States Postal Service (USPS) began replacing its fleet of delivery vehicles. In the almost 12 years since, only about 6 percent of its 51,500 custom-built delivery vehicles have been delivered. The Postal Service says the rollout will last at least two more years.

The signature USPS delivery truck is the Grumman Life Long Vehicle (LLV), which first entered service in 1986. Designed to last over 20 years, some have now been in service for twice as long, and don’t include many modern amenities, like air conditioning and airbags. Maintaining the LLVs beyond their best-by date involved reverse-engineering the 130,000-strong fleet for discontinued parts, according to The Washington Post. In 2014, the USPS began its $9.6 billion fleet upgrade by announcing the Next Generation Delivery Vehicle (NGDV) program.

Oshkosh Defense, which produces rather mean-looking tactical vehicles for the American military (and has never before produced a delivery van), was awarded a multibillion-dollar contract in February 2021 to produce the NGDV for the Postal Service over 10 years. The Post details the production nightmare that ensued. After repeated delays, setbacks, and quadrupling the minimum number of electric NGDVs, thanks to a generous $3 billion subsidy from the Inflation Reduction Act, Oshkosh had only delivered 612 of 35,000 e-NGDVs by November 2025, and only 2,600 of the 16,500 internal combustion engine NGDVs.

The Postal Service agreed to pay Oshkosh $77,692 per e-NGDV and $54,584 per NGDV in March 2023. To put these numbers in context, FedEx’s fleet of Mercedes-Benz Sprinter vans is considerably cheaper, costing $50,830 for the baseline 2026 Sprinter and $61,180 for the 2026 eSprinter. (The Sprinter debuted in 1995 and the eSprinter rolled out in 2019, two years before the USPS awarded its Next Generation Delivery Vehicle contract to Oshkosh.)

Paying almost $80,000 per vehicle should have rung alarm bells, but what makes this situation worse is that the USPS knows cheaper alternatives exist. 21,000 of the Postal Service’s new fleet are commercial off-the-shelf vans like the Ford E-Transit (whose 2026 model starts at $54,855). In 2023, there were nearly 40,000 Mercedes-Benz Metris vans (which start at $41,495) in its fleet. It’s unclear why the agency decided to get bogged down with Oshkosh at all. Whatever the reasons may be, price is not one of them.

What comes as no surprise is that a generously subsidized quasi-governmental agency is wasting money and time on a boondoggle.