Postal contracts awarded to DeJoy-run company were questioned in 2001 Postal Service audit

The Postal Service audit found that the company may have cost taxpayers $53 million more than had the contracts gone through a bidding process.

A two-decade-old audit of mail equipment transport contracts by the U.S. Postal Service’s inspector general found that a company previously run by Postmaster General Louis DeJoy was awarded multiple noncompetitive contracts by the Postal Service that may have cost consumers as much as $53 million more than if they’d been competitively bid.

The 2001 audit found that New Breed Logistics, a supply chain services provider based in North Carolina, was awarded more than $300 million in Postal Service mail equipment transport contracts that could have come in at a much lower price had they been shopped competitively to a range of vendors.

The audit raises questions about whether New Breed knowingly overbilled the Postal Service, and it renews scrutiny of the background and qualifications of DeJoy, a prolific Republican Party fundraiser and donor who was appointed to lead the Postal Service over objections from many officials involved in the selection process.

“It’s puzzling why it was not referred for investigation,” said former Postal Service Inspector General Dave Williams, referring to the conclusions reached by the audit. Williams was inspector general from 2003 to 2016.

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