Workhorse Group will file a legal challenge to the U.S. Postal Service decision in February to award a multibillion-dollar, 10-year contract to Oshkosh Defense to manufacture a new generation of postal delivery vehicles.
The contract, which could be worth more than $6 billion in total, allows for delivery of between 50,000 to 165,000 of the vehicles over 10 years that will be a mix of internal combustion-powered and battery-electric vehicles.
Workhorse had proposed building an all-electric vehicle fleet for USPS and has won the support of many U.S. lawmakers. USPS did not immediately comment. The bid protest will be filed in the U.S. Court of Federal Claims as early as Wednesday, the source said.
(Reporting by Jarett Renshaw; writing by David Shepardson; Editing by Chizu Nomiyama)