Friday, November 9, 2012

Competition and Opportunity

When shopping for the best price on a needed service, many people receive a collection of estimates on the work that needs to be done. Whether it’s installing a sprinkler system for the yard, laying down new carpet in the house, or replacing a transmission in a car, receiving multiple offers on the proposed job can help someone identify the best service for the best price. Recently, the Postal Service announced that it was going to seek bids from other companies in providing air transportation service as its contract with FedEx expires in September 2013. The transition to a competitive bidding process has domestic air services salivating at the opportunity.

UPS is particularly interested in the opportunity to work with USPS and is assembling a proposal that will seek to be the most competitive on the table. FedEx would like to remain partners with USPS and is working on its own proposal that it hopes will maintain that relationship. Other smaller companies such as ABX Air, ASTAR USA, and Atlas Air are among those that may also be interested in the opportunity to work with the Postal Service and could offer bids that they think will beat out the competition.

No matter which contract USPS accepts, the offer is likely to be the best combination of service and cost. The new partnership will help ensure that the services offered to USPS customers are as timely and affordable as possible, allowing the Postal Service to remain one of the most efficient carriers in the world.

What do you think about the request for proposals by USPS?

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