No-Bid DeJoy Contract Cost US Additional $53 Million

NBC News reports:

A two-decade-old audit of mail equipment transport contracts by the U.S. Postal Service’s inspector general found that a company previously run by Postmaster General Louis DeJoy was awarded multiple noncompetitive contracts by the Postal Service that may have cost consumers as much as $53 million more than if they’d been competitively bid.

The 2001 audit found that New Breed Logistics, a supply chain services provider based in North Carolina, was awarded more than $300 million in Postal Service mail equipment transport contracts that could have come in at a much lower price had they been shopped competitively to a range of vendors.

The audit, reviewed by NBC News, made it clear that the premise for awarding any noncompetitive contracts to a single vendor, such as New Breed, “did not fully meet Postal Service requirements” and “potentially exposed the Postal Service to cost and performance risks.”

NEW: Postmaster General Louis DeJoy’s former company, New Breed, was awarded multiple noncompetitive contracts by USPS that may have cost taxpayers as much as $53 million more than if they’d been competitively bid.https://t.co/fF0dc0IHwH via @nbcnews

— Heidi Przybyla (@HeidiNBC) September 14, 2020