Congressman Tim Ryan Urges SEC to Investigate Stock Purchase Preceding USPS Contract Announcement

Strategic Insights -

Congressman Tim Ryan of Ohio's 13th District has expressed concern over the sudden increase in Oshkosh Corporation stock one day before the announcement of a $6 billion contract to replace the USPS fleet. The congressman is calling on the Securities and Exchange Commission to investigate a $54 million stock purchase made 20 hours before the announcement, citing potential irregularities in the contract decision. Additionally, Congressman Ryan is critical of the fact that only 10% of the vehicles to be built under the contract are electric, despite President Biden's push for a federal fleet electrification.

Key Takeaways:

  • Congressman Tim Ryan has written a letter to the Securities and Exchange Commission (SEC) Acting Chair Allison Herren Lee, urging an investigation into a $54 million stock purchase of Oshkosh Corporation made one day before the announcement of a $6 billion USPS contract.
  • The contract, worth up to $6 billion, was awarded to Oshkosh Corporation for the Next Generation Delivery Vehicle program to replace the aging USPS fleet.
  • Congressman Ryan and several other lawmakers had previously written a letter to President Biden, urging him to halt the contract until a review can be conducted on potential political interference in the decision.
  • Only 10% of the vehicles to be built under the contract are electric, despite President Biden's call for the electrification of the federal fleet.
  • Congressman Ryan's letter raises questions about the sudden increase in Oshkosh stock and whether it may have been influenced by the contract announcement.
  • The letter specifically mentions that an over $54 million purchase of Oshkosh stock was made 20 hours before Postmaster General Louis DeJoy's announcement of the contract decision.
  • Congressman Ryan is concerned that the contract decision may have been influenced by inappropriate political influence.
  • The full text of the letter is available online and includes audio of Congressman Ryan's address to the House panel in which he announced concerns over the contract decision.

Statistics:

  • The contract for the Next Generation Delivery Vehicle program is worth up to $6 billion.
  • $54 million was spent on a stock purchase of Oshkosh Corporation 20 hours before the announcement of the contract decision.
  • Only 10% of the vehicles to be built under the contract are electric.
  • The United States Postal Service (USPS) is set to replace its aging fleet of vehicles with new ones under the contract awarded to Oshkosh Corporation.

Sources:

  • Congressman Tim Ryan Press Release, March 8, 2021
  • United States House of Representatives -- Congressman Tim Ryan (OH-13) letter to President Biden, March 4, 2021
  • United States House of Representatives -- Congressman Tim Ryan (OH-13) letter to Acting Chair Allison Herren Lee, SEC, March 8, 2021