The Top 150 U.S. Postal Service Contractors In Fiscal Year 2017

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As part of our postal industry practice, we annually compile a list of the Top 150 USPS Suppliers FY 2017 based on data received under the Freedom of Information Act. Here are the results.

2017 TOP 10 USPS SUPPLIERS

Rank Company FY16 Revenues ($) Billing Location
1 Federal Express Corp. 1,610,032,667.51 Pasadena, CA
2 Eagle Express Lines, Inc. / Hoovestol, Inc. 452,429,404.39 South Holland, IL
3 EnergyUnited Electric Membership Corporation 402,457,507.23 Statesville, NC
4 Salmon Companies, Inc. 314,302,632.19 Little Rock, AR
5 Victory Packaging 221,231,326.34 Houston, TX
6 Accenture Federal Services 204,401,689.37 Chicago, IL
7 HP Enterprise Services, LLC 198,520,000.24 Plano, TX
8 Northrop Grumman Corporation / Solystic SAS 194,079,920.46 Merrifield, VA
9 Wheeler Bros., Inc. 179,731,008.40 Somerset, PA
10 United Parcel Service of America, Inc. (UPS) 171,629,039.45 Louisville, KY

Overall, USPS spent $13.9 billion on outside purchases and rental payments in FY 2017, an increase of $181 million over last year. The Top 10 USPS suppliers received a total of $3.9 billion, up $400 million from last year and accounting for 28 percent of the Postal Service’s total spend. The Top 150 suppliers received $9.2 billion, about two-thirds of the agency’s total spend. Only 81 suppliers collected revenues exceeding $25 million in 2017.

As it has since 2002, Federal Express Corporation lands atop the list, this year with $1.61 billion in revenues—about a $68 million drop from its 2016 earnings. FedEx carries package and letter mail for the Postal Service. FedEx’s air cargo network contract with the Postal Service has been extended several times, and the latest extension takes it to September 29, 2024.

Mail haulers Hoovestol Inc. and its affiliated company Eagle Express Lines rolled into second place with $402 million in revenue. Much of this increase was due to Eagle absorbing the mail transportation contracts of Beam Bros. Inc. The fourth spot was filled by another mail hauler, Salmon Companies, Inc., with $314 million in revenue.

United Parcel Service, which provides air transportation and related services, rounded out the Top 10, with $171 million in revenue. The highest-ranked passenger airline was United Airlines, at no. 11, with $164 million revenue; the next highest passenger airline ranked was American Airlines, Inc. with $92 million. All three entities earned greater revenue from USPS than the prior year.

Technology companies also figured prominently in the Top 10 for FY 2017. EnergyUnited Electric Membership Corporation, which provides telecommunication and energy billing services, was ranked third with $402 million in revenue, though its revenue declined by $12 million from last year. Accenture Federal Services ranked sixth with $204 million in revenue, an increase of $14 million from last year.

HP Enterprise Services, LLC, a provider of computer equipment, was seventh with $198 million in revenue. Northrop Grumman Corporation, which operates the Postal Service’s central repair facility in Topeka, Kansas, rose to eighth place with $183 million in revenue. Other technology companies are not far behind, with IBM, Verizon, and Deloitte Consulting LLP again placing in the Top 20.

The only company in the Top 10 not providing technology or transportation-related items is packaging products supplier Victory Packaging. Victory boxed up $221 million in revenue, almost exactly the same amount as last year. Victory is responsible for fulfillment, distribution, warehousing, call center, and outbound transportation of USPS branded packaging products to Post Offices.

Prior year Top 150 Lists

Top 150 USPS Suppliers – FY 2016

Top 150 USPS Suppliers – FY 2015

Top 150 USPS Suppliers – FY 2014

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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