DeJoy(less) strikes again -he is by far the most problematic of all Trump Appointees SHOCKING AWARD TCV $6Billion to Oshkosh Electric Vehicles -the numbers don’t add up
But the damage DeJoy continues to do to the USPS -deserves a permanent spotlight and heightened scrutiny. There’s nothing DeJoy does that doesn’t appear to be dubious -insider trading malarkey too
Why has Louis DeJoy not been indicted?
I’m being quasi snarky - If you followed me on Twitter undoubtedly you’ll remember the threads. Between the Mail slow down, straw donors, OGE and other not awesome conduct by DeJoy(less) here or here -I tweeted about the USPS - a lot - such a pity all of that decent research is gone. I know I should eventually just come to terms with it.
To Gas or no gas - 10% Good? “Oh and give me more money or you’ll regret it”
On February 23, 2021 the United States Postal Service (USPS) announced that it had signed a massive “new” contract with Oshkosh Electric Vehicles.1 —Per the Press Release2 - DeJoy(less) touted a bunch of questionable and problematic statements (perhaps misstatements). For Example: Oshkosh Defense Will Finalize Design of Next Generation Delivery Vehicle (NGDV), Delivering Up to 165,000 of the U.S.-Built Vehicles Over the Next Decade
•Investment is Part of Soon-to-be-Released, 10-Year Plan to Transform USPS Into the Preferred Delivery Service Provider for the American Public
•Modernization to Reduce USPS Fleet’s Costs and Greenhouse Gas Emissions as Cleaner Technologies, such as Electric Powertrains, Power Carrier Routes
To date DeJoy(less) and the USPS Board of Governors have refused to publicly release the Statement of Work, the creation of contract award and other proposals submitted. All of which is contrary to F.A.R. and T.I.N.A and the USPS obfuscation and demurring to lawful request of Information is vexing if not problematic. However DeJoy(less) track record of ignoring and flat out refusal to provide Congress and the American Tax Payers with basic information is increasingly problematic.
On the 23rd of February DeJoy stated he would “release the plan” -it is now mid-March and nothing has been released because Louis DeJoy is a proven unethical corrupt liar who talks like he’s a mob boss. I have no joy for DeJoy(less). I genuinely do not understand how he has not been indicted for “textbook straw-donors” or his repeated lack of disclosure of financials. The guy acts and talks like a mob-boss and it’s completely unacceptable.
Taxpayers on the hook for >$481M but up to $6B
First DeJoy(less) lack of transparency is nothing new. His refusal and abuse of power has been on full public display since he decided to initiate radical changes that directly impacted Mail Delivery- especially during the 2020 Presidential Election. Everything and I mean everything that DeJoy(less) touches ends up dripping in corruption, self dealing and eviscerates “ethics”
Of the first deployment of Oshkosh “electric vehicles” only 10% will actually be electric. Moreover Oshkosh- the awardee noted sever deficiencies both in terms of production and cost controls.
It’s fine. Everything is totally fine because not only is this an IDIQ contract now DeJoy(less) inner Mob-New-Jersey is coming out and he’s threatening Congress with reprisal. I mean why would he stop at our Veterans getting their Meds delayed or regular Americans feeling the brunt of his failed leadership which caused Mail delivery to slow to a grinding halt.
Next Generation Delivery Vehicles (NGDV) Circa 2015 to present
In order to understand the February 2021 Announcement3 it is best to provide you with an abbreviated recap of the USPS-NGDV, circa 2015. Think of this as “the beginning” - USPS Statement on Next Generation Delivery Vehicles Prototype Selection and Request for Proposal for Commercial Off-the-Shelf Delivery Vehicles. I’ve taken the liberty of highlighting and underlined the relevant subsections of the 2015 USPS-NGDV4 announced. Note the 50% number that’s going to be more important than you might think.
USPS-NGDV PROBLEMS per USPS-OIG
In August of 2020 the USPS-OIG issued a scathing report5 (don’t get me started because I did a lot of research and walked my Twitter followers through the various reports, production deficiencies and other areas of concern regarding DeJoy) below are a few high level takeaways from the USPS-OIG Report;
Issuing the official Request for Proposal to suppliers for the prototype vehicle took six months longer than initially planned.
Postal Service extended the timeframes for building 44 prototype vehicles from six months to one year based on requests from suppliers for additional time to develop proposals and design prototype vehicles.
Without adequate time to test their assembled vehicles, the suppliers delivered faulty vehicles. The Postal Service suspended field testing and returned all of the vehicles to the suppliers to correct the deficiencies.
Postal Service implemented two additional tests — a simulated field test and a durability test — to address critical safety issues. That created delays between three to eight months, depending on the individual performance of a supplier’s vehicle.
Oshkosh -Insider Trading -SEC asked to Investigate questionable trades
If DeJoy(less) and Oshkosh want to keep stonewalling Congress - that’s their choice but as the saying goes - where there’s smoke -there’s fire. And the neat thing about Congress is their Oversight Powers, see March 8, 2021 letter from Rep Tim Ryan to the Securities and Exchange Commission (SEC) requesting that their enforcement group investigate what appears to be “insider trading”6 - as widely reported, the night before the award announcement, an unknown party purchased 524,400 shares of Oshkosh Corp. stock worth an estimated $54.2 million. According to Bloomberg News, “the size of that trade was almost as much as average daily volume in the stock in the prior year.”7
Over $54 million purchase of OSK, made 20 hours before Mr. DeJoy’s announcement, was brought to my attention on social media and in news reports. Additionally, it is my understanding that the OSK stock rose significantly prior to the announcement. Given the gravity and serious implications of this contract, I am writing to request that the Securities and Exchange Commission look into this issue as soon as possible.
Postal Vehicle Modernization Act (PVMA)
As part of Congress’ Oversight - they have the ability to (shocker) pass new laws, as is the case of the Postal Vehicle Modernization Act8, mainly because the February 23, 2021 USPS Announcement only made 10% of any of the USPS-NGDV as fully electric. Setting aside the long documented issues that have long plagued Oshkosh’s production and roll out of their electric vehicle(s)
The proposed House Bill, mandates the USPS to actually guarantee that at least 75% of its new fleet will be electric/zero-emission delivery trucks. The PVMA also requires USPS to make a minim of half of its medium and heavy-duty vehicles electric or zero-emission.
President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad
Which directs ALL Government Agencies —(and yes this includes the USPS) — to move toward “clean and zero-emission vehicles.” Stating in part that Climate Change is also a National Security risk…the executive order9 reads in part:
Domestic action must go hand in hand with United States international leadership, aimed at significantly enhancing global action. Together, we must listen to science and meet the moment.
Moreover on March 1, 2021 several lawmakers wrote to President Biden to express their growing concern about the USPS-Postmaster General DeJoy’s contract award. 10
March 11, 2021 House Appropriations Hearing
The thing about Congress is they hold a lot of hearing and the hearings are often overlooked but written testimony makes it hard to ignore the facts being presented. For example Louis DeJoy submitted a twenty page written testimony11 and there are some interesting facts.12 His testimony aggregates the numbers of Mail delivery. For the record this is not about Postal Carriers, they are decent public servants. What the issue is DeJoy’s perplexing changes and the intended and unintentional impact on Americans. Testimony found here.
March 12, 2021 Letter to DeJoy from Lawmakers
On March 12, 2021 House OverSight Chairwoman Rep Maloney sent Postmaster General Louis DeJoy a letter13 requesting for documents related to the U.S. Postal Service’s recent contract award to purchase up to 165,000 new postal vehicles from Oshkosh Corporation - in DeJoy’s recent testimony he “clarified” the Oshkosh deal would only place up to 10% of the vehicles as electric or zero emissions, which contravenes the current Administration’s plan to have all Federal Vehicles be fully electric or hybrid…
And while most might find assertions that the USPS-NGDV contract award is cloaked in an opaque shield of secrecy- that’s actually not an opinion. For example look at the list of Documents the House Oversight committee requested. The aggregated list on page 2 of the March 12, 2021 letter all but affirms the assertion that the USPS contract should be held in abeyance - until such time the USPS-OIG, GAO, House Oversight and Appropriations Committees, respectively conduct a full audit or investigation. There is something rotten with the USPS leadership and Board of Governors but specifically Louis DeJoy.14
Ask Senator Rom Johnson - trust me on that
Oh come on do you really think that Ron “dirty-pedo-sympathizer” Johnson isn’t up to his eyeballs in this wretched deal? I can assure you that yes he is and I swear if Wisconsians re-elect him - I might have to wonder what is wrong with Wisconsin. But if I were let’s say an investigator or a reporter - I’d be super curious to know the communications Ron-O had with DeJoy and Oshkosh (spoiler he has had a lot)
USPS-NGDV AWARD - Summary
To say the “secretive” nature of the recent USPS contract award to Oshkosh is an alarming departure in Federal Acquisition processes- is an understatement. Everything and I mean everything DeJoy(less) touches ends up being corrupt or at best highly questionable ethics. The Oshkosh award makes zero sense, and if possible I would think that the other manufacturers could (and should) submit an actual protest via the USPS or file in the US Federal Claims Court.
Not to belabor this, but nearly every portion of this “secret” contact seems dubious and the rationale of which DeJoy(less) has yet to share - Given his conduct it is preordained that most should view the contacts as highly questionable. That said I think you know have a decent understanding of what’s at play.
The next steps I would look for - DeJoy(less) stonewalling while simultaneously CYA and the USPS-OIG should launch an internal investigation, as should the SEC and frankly it might be advantageous for the DOJ - to also investigate the purported “insider trading” of Oshkosh and it’s senior executives. Updates shall be forthcoming as warranted.
-Filey
Oshkosh Electric Vehicles Fleet, last visited March 12, 2021 - https://www.oshkoshcorp.com/en/brands-innovations
USPS February 23, 2021 Press Release - last visited March 12, 2021 - https://about.usps.com/newsroom/national-releases/2021/0223-multi-billion-dollar-modernization-of-postal-delivery-vehicle-fleet.pdf
see the General Services Administration (GSA) 2020 cost analysis report- gas versus electric - lifetime cost of electric vehicles versus those with internal combustion engines appears to be a “wash” - last visited March 13, 2021 https://www.gsa.gov/cdnstatic/FedFleet2020_EV_Market.pdf
USPS-NGDV 2015 Statement, last visited March 13, 2021 - https://about.usps.com/news/statements/091616.htm
USPS-OIG Report Number 19-002-R20 | August 12, 2020 | last visited March 13, 2021, https://www.uspsoig.gov/sites/default/files/document-library-files/2020/19-002-R20.pdf
Rep Tim Ryan March 8, 2021 letter to the SEC, last visited March 13, 2021 - https://timryan.house.gov/sites/timryan.house.gov/files/Letter%20to%20SEC%20Acting%20Chair%20regarding%20Oshkosh%20Trade.pdf
Oshkosh Corp - unknown buyer purchased more than 524K shares - Bloomberg News, published March 6, 2021 - updated March 10, 2021 - Last visited March 14, 2021 https://www.bloombergquint.com/business/big-trade-in-oshkosh-shares-before-postal-award-spurs-questions
The Postal Vehicle Modernization Act (PVMA), originally filed on December 22, 2020, last visited on March 13, 2021 - https://huffman.house.gov/imo/media/doc/117_Postal%20Vehicle%20Modernization%20Act_TEXT.pdf
President Biden Executive Order on Tackling the Climate Crisis at Home and Abroad - issued on JANUARY 27, 2021 - last visited on March 14, 2021 - https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/
March 1, 2021 Senator Brown et al letter to President Biden concerning the USPS-NGDV contract award to Oshkosh - last visited March 14, 2021 - https://www.brown.senate.gov/imo/media/doc/Brown_Ryan_Kaptur_USPSFleetLetter.pdf
DeJoy March 11, 2021 written testimony before the House Appropriations Committee Hearing, found https://docs.house.gov or via my public drive (highlighted and annotated)
39 U.S.C. § 2401 USPS Appropriations- last visited March 13, 2021 https://www.govinfo.gov/content/pkg/USCODE-2002-title39/pdf/USCODE-2002-title39-partIII-chap24-sec2401.pdf
March 12, 2021 House Oversight Letter to DeJoy - last visited March 13, 2021 - https://oversight.house.gov/sites/democrats.oversight.house.gov/files/2021-03-12.CBM%20to%20Dejoy-%20USPS%20re%20Vehicle%20Contract.pdf
Still waiting for my Christmas card to show up at my mother in law's and wondering why my business check took 30 days and a stop payment fee to finally appear in a company lockbox.
In the words of "Wicked"- Unadulterated Loathing-- for this guy. His indictment is long, long overdue.
WHY... has the Biden administration continued to allow him to make decisions AND sign / negotiate contracts AND spend money!!!