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Technology, Manufacturing & Transportation|In The News

Transportation Contractors Lead 2016 List of Top Postal Service Suppliers

News Releases
3.15.17

Husch Blackwell announced today the publication of its Top 150 U.S. Postal Service Suppliers list, an annual look at the companies with the largest supplier relationships with the U.S. Postal Service (USPS). All told, USPS spent over $14 billion on outside purchases, about half of that for transportation. David Hendel, a partner in the firm’s Technology, Manufacturing, and Transportation group, and leader of the firm’s Postal Contracting team, has compiled the list of top USPS suppliers annually since 1999. The list is based on data received in response to Freedom of Information Act requests.

Transportation contractors fill half of the first ten spots on the Top 150 for fiscal year 2016, which ended September 30, 2016. As it has since 2002, Federal Express Corporation lands atop the list, this year with $1.678 billion in revenues – about a $300 million increase from last year.  FedEx carries package and letter mail for the Postal Service. FedEx’s air cargo network contract with the Postal Service was recently renewed for a five-year period, extending the contract until September 29, 2024. 

FCA US, LLC, formerly known as Chrysler Group LLC, raced to No. 4 on the list with $270 million in revenue. In April 2016, USPS agreed to purchase 9,113 Ram ProMaster commercial vans from FCA. Rounding out the transportation-related companies in the Top 10 are trucking companies Salmon Companies (No. 5, $242 million), Eagle Express Lines, Inc. (No. 8, $179 million) and auto-supplier Wheeler Bros., Inc. (No. 9, $177 million). Package and logistics giant United Parcel Service is ranked No. 11, earning $161 million in postal revenues. Six of the companies ranked No. 11 through 20 also provide transportation services to USPS. 

Technology-related companies secured four of the Top Ten spots. EnergyUnited Electric Membership Corporation, which provides telecommunication and energy billing services, is again the Postal Service’s second-largest supplier with $414 million in revenue, most of which is paid out to other companies. HP Enterprise Services, LLC, a provider of computer equipment, captured No. 3 with $286 million in revenue, about $95 million more than last year.

Accenture Federal Services, which provides enterprise technology and consulting services to the agency, is ranked No. 7 with $190 million. Northrop Grumman Corporation, which operates the Postal Service’s central repair facility in Topeka, Kansas, is No. 10 with $171 million in revenue. Other technology companies are not far behind, with IBM and Deloitte LLP again placing in the Top 20.

The only company in the Top 10 not providing technology or transportation-related items is packaging products supplier Victory Packaging. Victory boxed up $221 million in revenue, a $10 million increase from last year.

Top 10 USPS Suppliers*

Rank

FY15

Company

FY16 Revenues

Billing Location

1

1

Federal Express Corp.

$1,678,855,833

Pasadena, CA

2

2

EnergyUnited Electric Membership Corp.

$414,352,778

Statesville, NC

3

7

HP Enterprise Services, LLC

$285,942,420

Plano, TX

4

26

FCA US, LLC

$269,722,639

Auburn Hills, MI

5

4

Salmon Companies, Inc.

$241,796,411

Little Rock, AR

6

5

Victory Packaging

$221,393,566

Houston, TX

7

8

Accenture Federal Services

$190,484,322

Chicago, IL

8

12

Eagle Express Lines, Inc.

$178,603,404

South Holland, IL

9

9

Wheeler Bros., Inc.

$177,388,988

Somerset, PA

10

10

Northrop Grumman Corporation

$171,155,578

Merrifield, VA

* Entries for companies believed to be affiliated or have common ownership were consolidated under the company with the highest individual ranking or best known name. City/state designations are based on the information in USPS payment records and may not be the contractor’s primary location. As in past years, purchases made under credit cards (including U.S. Bank and Voyager card fuel purchases) are not included in this list.

About Husch Blackwell’s Postal Service Contracting Team

Husch Blackwell’s Postal Service Contracting team assists clients in contracting with the U.S. Postal Service, and its members are knowledgeable regarding the needs specific to the postal industry. The team has compiled annual reports on the top U.S. Postal Service suppliers since 1999, developed and presented dozens of seminars on Postal Service contracting to thousands of attendees, and written the definitive treatise on successfully doing business with the USPS. Previous lists of the Top 150 postal suppliers