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Article: Postal Service-FedEx Deal Would Increase Costs, Lawsuit Says
- Article from:
- The Washington Post
- Article date:
- March 11, 2001
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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A $6.3 billion no-bid contract awarded to FedEx Corp. by the U.S.
Postal Service will increase the cost of transporting mail by between
$443 million and $1.17 billion over the life of the agreement,
according to documents filed in a lawsuit by a FedEx competitor. That
would translate into higher prices for Postal Service customers and
poorer service, the suit alleges.
When it announced the deal in January, the Postal Service
justified the absence of competitive bidding by saying the
arrangement would save $1 billion over the seven years of the
contract and would improve efficiency in the air delivery of
priority, express and first-class mail. The Postal Service and FedEx
declined to release ...