Spartan Motors, Inc. (NASDAQ: SPAR) announced that its Spartan Fleet Vehicles and Services (FVS) business unit — which encompasses the Utilimaster go-to-market brand—received an award from the United States Postal Service (USPS) to build fully functional prototypes for the Next Generation Delivery Vehicle (NGDV) Program. The NGDV Program is a part of the Postal Service's test and evaluation process undertaken as part of its plans to replace its aging delivery fleet.
Utilimaster was one of six vehicle manufacturers selected to receive the prototype award as part of a comprehensive USPS Request for Proposal (RFP) process. Utilimaster has previously supplied the USPS with mail route delivery vehicles.
"We are pleased to be among a select group of vehicle makers to win the USPS prototype award, further validating our focus on and investments in engineering, forward-looking technology and world-class manufacturing," said Daryl Adams, President and Chief Executive Officer of Spartan Motors. "We are approaching this opportunity with the goal of providing the USPS with both improved performance, operating efficiency, and improved cost effectiveness. We expect our NGDV protoypes will incorporate new technologies to better accommodate a diverse mail and package mix, enhance safety, improve service and reduce emissions. With our proprietary R&D process and manufacturing know-how, our vehicles and upfits will be customized to align with the USPS' universal service mandate to deliver the mail almost every day to every address."
The USPS awarded $3.6 million to Spartan for the working prototypes, which are to be delivered no later than Sept. 16, 2017, one year from the prototype award. The USPS has indicated they will test prototypes for a six-month period. Production requirements and future vehicle replacement award(s) will be determined by the Postal Service after NGDV Prototype testing.