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DeJoy’s USPS Awards Contract To DeJoy Cash-Cow Company

DeJoy’s USPS Awards Contract To DeJoy Cash-Cow Company

Louis DeJoy’s Postal Service just awarded a $120 million contract to a company that DeJoy financially benefits from, once again raising concerns about the postmaster general’s judgment about conflicts of interest.

According to information uncovered by the Washington Post in DeJoy’s financial disclosure statements and a federal contracting database, the U.S. Postal Service awarded the five-year contract to XPO Logistics. Immediately before being named postmaster general DeJoy served as XPO’s chief supply chain executive, a position he assumed after his company, New Breed Logistics,” was acquired by XPO.

DeJoy has divested some of his family’s holdings in XPO but it still retains a significant financial interest. His family businesses continue to lease four office buildings in North Carolina to XPO. Those leases could generate up to $23.7 million in rent payments for the DeJoy businesses over the next decade, according to a person who shared details of the agreements with The Washington Post but spoke anonymously to discuss confidential financial arrangements.

Jeffery Adams, a Postal Service spokesman,  said that DeJoy did not participate in the procurement process for the XPO contract, which was competitively bid. The DeJoy company leases to XPO were cleared by ethics officials before DeJoy took office in June 2020, according to a previously unreported Postal Service inspector general investigation, because the properties were rented to a contractor and not the agency itself. DeJoy is recused from any matters involving XPO, Adams said.

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Ethics watchdog groups are unimpressed with the brush-aside.

“There’s no question he’s continuing to profit from a Postal Service contractor,” said Virginia Canter, chief ethics counsel at watchdog group Citizens for Responsibility and Ethics in Washington. “He can comply with these technical legal requirements … but it does create an appearance issue about whether it’s in his financial interest to continue to make policy that would benefit contractors like XPO.”

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