U.S. Postal Service awarded FedEx a seven-year Air Cargo Network contract to provide domestic air transportation service for priority and express mail.
The present contract with FedEx ends in September, and the new contract will begin in October.
Following an evaluation of technical aspects, pricing and other factors, USPS determined that FedEx would get the contract.
Based on estimated volumes, the new agreement is valued at approximately $10.5 billion over the seven-year term.