Transportation Contractors Lead 2016 List of Top Postal Service Suppliers

By: | at 11:38 AM | Logistics  

WASHINGTON, DC - 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.

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