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FedEx Powers Much of USPS Air Service Including Priority Mail

The U.S. Postal Service recognized FedEx recently as part of its annual Supplier Performance Awards. FedEx carries the majority of domestic air packages for the Postal Service and had been awarded a 7-year contract last year valued at approximately $10.5 billion.

FedEx received the Postmaster General’s Supplier Award, a newly created award. According to the USPS, the supplier awards recognize performance that “reduces costs, maintains high levels of service and provides innovative and sustainable solutions.”

FedEx has provided expanding domestic air transportation for Priority Mail, Priority Mail Express, and First-Class Mail since 2001. In fiscal year 2013, FedEx carried approximately 90 percent of Priority Mail, 99 percent of Priority Mail Express, and 75 percent of all mail that was transported domestically by air transportation for the Postal Service.

Among other suppliers receiving awards were:

  • Metro Air Service, Inc., which provides logistics services at 12 U.S. airports and acts as a conduit between the Postal Service’s air transportation and ground network services, providing scanning services, container preparation and surface transportation.
  • Marriott Hotel Services, Inc., which manages the Postal Service’s National Center for Employee Development (NCED) in Norman, OK. and which, as training volume decreased due to Postal Service staff reductions and the adoption of distance-learning technologies, marketed the unused capacity to the public, which generated revenue and helped to offset the cost of operations.
  • Deloitte Consulting LLC for projects that included Network Optimization, Workforce Optimization, Secure Digital Solutions, Mail Transportation Equipment Online Ordering Project and Federal Cloud Computing Exchange.
  • Asset LifeCycle, LLC, which recycles the Postal Service’s excess electronics and waste materials through a no-cost, revenue-generating contract, avoiding more than $15 million in the disposal costs in 2013 and generating more than $1.25 million for the Postal Service.

More information about the awards and other winners is found on the USPS website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.