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Transportation and Technology Companies Dominate Top Postal Service Suppliers in 2015

February 29, 2016

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David Hendel compiles the list annually based on data received under the Freedom of Information Act.

Transportation and technology companies occupy nine of the top 10 spots on the Top 150 U.S. Postal Service Suppliers list for fiscal year 2015. Federal Express Corporation again tops the list, a position it has held since 2002.

Overall, the Postal Service spent $12.5 billion on outside purchases, about half of it on transportation. David Hendel, a partner at Husch Blackwell, compiles the list annually based on data received under the Freedom of Information Act.

FedEx, now in the third year of a seven-year air cargo network contract, received nearly $1.4 billion in revenue, a 3 percent drop from last year. Package giant United Parcel Service is also among the agency’s top suppliers, earning $154 million in postal revenues and moving up from No. 12 to No. 11.

Other transportation-related companies in the top 10 include trucking company Salmon Companies, Inc. (No. 4, $229 million); Victory Packaging, logistics and distribution services provider for ReadyPost and other packaging supplies programs (No. 5, $212 million); commercial airline United Airlines, Inc. (No. 6, $197 million); and auto-parts supplier Wheeler Bros., Inc. (No. 9, $175 million). Not far behind are trucking company Eagle Express Lines, Inc., No. 12 ($140 million); cargo airline Kalitta Air, LLC, No. 15 ($97 million); and commercial airline Delta Air Lines, Inc., No. 16 ($93 million).

Technology-related companies on the list start with EnergyUnited Electric Membership Corporation, which provides telecommunication and energy billing services. EnergyUnited is again the Postal Service’s second-largest supplier with $440 million in revenue, most of which is paid out to other companies. At No. 3 is Honeywell International, Inc., which received $273 million under its contract to provide 225,000 Mobile Delivery Devices (MDD). Letter carriers use the MDD to scan mail and packages.

HP Enterprise Services, LLC, a provider of computer equipment, ranks No. 7 with $192 million in revenue, about $20 million more than last year. Accenture Federal Services, which provides enterprise technology and consulting services to the agency, is ranked No. 8 with $188 million. International Business Machines Corporation (IBM) and AT&T Corporation again placed in the Top 20. EMC Corporation, which recently won a Postal Service contract to provide information storage and management services, has already cracked the Top 20 with $81 million in postal revenue.

Rounding out the Top 10 with $159 million in revenue is Northrop Grumman Corporation, which operates the Postal Service’s central repair facility in Topeka, Kansas.

The below list shows the Top 10 Postal Service suppliers for fiscal year 2015, their previous ranking, and city/state for payment purposes. Husch Blackwell Partner David Hendel, who leads the firm’s Postal Contracting group, compiles the list annually based on data received from the U.S. Postal Service in response to a Freedom of Information Act request. Entries are consolidated for companies believed to be affiliated or under common ownership. Purchases made by credit card are not included.

FY 2015 Rank FY 2014 Supplier Name FY 2015 Revenue City, State
1 1 Federal Express Corporation* $1,371,942,204 Pasadena, CA
2 2 EnergyUnited Electric Membership Corporation $439,851,812 Statesville, NC
3 - Honeywell International, Inc. $273,078,645 Morris Plains, NJ
4 3 Salmon Companies, Inc.* (formerly Pat Salmon & Sons, Inc.) $229,166,475 Little Rock, AR
5 4 Victory Packaging $211,547,592 Houston, TX
6 6 United Airlines, Inc.* $196,698,412 Pasadena, CA
7 7 HP Enterprise Services, LLC $191,687,741 Plano, TX
8 8 Accenture Federal Services $188,000,632 Chicago, IL
9 9 Wheeler Bros., Inc. $175,250,446 Somerset, PA
10 10 Northrop Grumman Corporation* $158,566,932 Merrifield, VA

* denotes consolidated entries

Husch Blackwell’s Postal Service Contracting group 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.