The stock market transactions of its executives and board members raise a tricky question for Workhorse as it focuses on future government operations: Are the company`s internal controls strong enough to entrust it with taxpayer-funded contracts? Workhorse shares rose in September as the market focused more on the postal contract. Shares were also pushed higher by growing investor enthusiasm around Lordstown Motors (Workhorse held a 10% stake in it), which went public later in the fall. It`s a sad song, but like the Beatles Jude, electric vehicle maker Workhorse Group is trying to do a little better. The company voluntarily withdrew a lawsuit it had filed against the U.S. Postal Service after the agency handed over Workhorse for a multibillion-dollar contract to manufacture the next generation of mail delivery vehicles. Since the postal contract was awarded to a competitor, Workhorse has sued the government, trying to reverse the postal decision or win part of the tender. But on Sept. 14, he dropped the lawsuit, expressing hope the move would improve his chances of future federal contracts. Insiders sold more shares — nearly 215,000 later this month — even as Workhorse`s confidential trading went into trouble.
They sold for months to a week before the disappointing announcement of the postal contract. In the lawsuit, Workhorse`s only description of its initial response to the loss of contract was: “Several aspects of the announcement were surprising.” DeJoy is a criminal and should be jailed for MANY offenses. The award of this fraudulent contract to OSHKOSH is just one of them! The seller also claims that in awarding its contract, the USPS agreed to pay Oshkosh $482 million to complete the development of its vehicle concept before starting production. Oshkosh said he would continue his contract despite Workhorse`s complaint. A number of contracts are expected to approach $6 billion. The electric vehicle startup lost the contract in February when the USPS selected a defense contractor “Oshkosh Defense is aware that Workhorse Group has filed a protest regarding the U.S. Postal Service`s award of the next-generation delivery vehicle contract to Oshkosh. While tenders are an integral part of the public procurement process, we do not comment on such procedures,” the company said in a statement. Behind the scenes, Workhorse faced further challenges with the postal contract that drove up its shares. The song is indeed sad, and not just for Workhorse shareholders. The USPS decision was one of the first signs of the long and fierce battle that President Biden`s green agenda will face.
Taxpayers have missed an opportunity (at least for now) to save billions of dollars and tons of emissions. However, betting on government contracts is a dangerous business for any business, and when the milk stops flowing, you`ll have to find another cow. There are other options for Workhorse, and Dauch`s decision is undoubtedly the right one. LOVELAND, Ohio – Earlier this year, the Workhorse Group seemed to enjoy exhilarating moments. The small manufacturer of electric freight cars has seen its stock skyrocket and its future apparently sealed by a multi-billion dollar contract. However, Workhorse said in its challenge to the contract that the USPS “put its thumb on Workhorse” and removed its prototype from consideration due to a “safety incident” caused by the error of a USPS test track pilot. The contract could be worth more than $6 billion in total. It can deliver over 10 years from 50,000 to 165,000 a mixture of internal combustion and battery electric vehicles. Oshkosh said he was still in the process of completing the design of the new vehicle and they wouldn`t hit the road until 2023. The USPS has agreed to invest $482 million in advance to prepare the new vehicle. Oshkosh had worked with Ford during the bidding process, but the automaker repeatedly declined to comment on whether he was involved in the defense company`s final pitch, which is very different from spy images of previous prototypes based on the transit van. Electric car maker Workhorse Group called the U.S.
Postal Service`s decision to award a huge contract for the next postal car to a rival “arbitrary, capricious and without rational basis” in a lawsuit. Now that Oshkosh has bought Pratt & Miller (from the global glory of racing and defense contracts), there is an endless supply of design and engineering expertise that simply does not exist at Workforce. But of the options that were on Workhorse`s table, this one could prove to be the most effective in helping the company`s legal team understand why the USPS chose Oshkosh. “You`re going to see everything, the whole file, how [the bids] were evaluated, the price rating,” a person familiar with the postal service`s contracting process told The Verge earlier this year. However, this process will likely take place under a protection order, so Workhorse`s lawyers can ultimately only tell the company whether or not they have a good chance of winning. After Workhorse disputed the price, Oshkosh`s CEO said they won the contract fairly and that “we know how to do it big on government contracts.” A more serious allegation is that the USPS violated its own procurement rules. They flew a two-year flight between competitors and awarded the contract to Oshkosh for a van that was never tested, but with the promise that if the USPS gives them a few hundred million dollars for development, they will find something better. In contrast, Irwin, the analyst at Roth Capital, called the USPS contract decision “shocking” in a March note to investors. Here is the complaint. storage.courtlistener.com/recap/gov.uscourts.uscfc.43940/gov.uscourts.uscfc.43940.28.0.pdfCertainly Workhorse`s point of view, but if any of the allegations prove to be true, the contract should be repealed. WASHINGTON, June 16 (Reuters) – Electric vehicle company Workhorse Group (WKHS.
O) filed a lawsuit Wednesday against the U.S. Postal Service`s decision in February to sign a multibillion-dollar, 10-year contract with Oshkosh Defense (OSK. N) Production of a new generation of postal delivery vehicles. A company on the shortlist for building the next-generation postal delivery vehicle said it was unfairly disqualified from including more than $3 billion in the contract. But in a statement, the agency said it also looks forward to Oshkosh moving forward with the treaty. .