USPS Ready For $2.4B Annual Overhaul Over Next Decade

The USPS is still testing various prototypes and plans to select a vendor this year. The USPS also plans to spend an average of $607 million per year over the next ten years on maintaining current facilities…

Washington, D.C.-The United States Postal Service (USPS) plans to ramp up its spending on capital investments to $2.4 billion per year over the next 10 years, according to a report from the Government Accountability Office (GAO). This increase is up from $1.4 billion over the last 10 years.

The uptick in capital expenditures stems primarily from the agency’s plan to overhaul its entire fleet of vehicles. Its average vehicle is decades old, forcing the agency to pay an average of $4,500 annually on maintenance per vehicle. 

The USPS is still testing various prototypes and plans to select a vendor this year. The USPS also plans to spend an average of $607 million per year over the next ten years on maintaining current facilities.

USPS plans to spend $541 million annually on information technology improvements, mostly to better protect against cyber threats, and $464 million per year on mail processing equipment. Information technology improvements are the most critical as that can help lower annual costs.