WASHINGTON (March 31, 2015) — Retreaders that supply tires to the U.S. Postal Service (USPS) are watching closely as the agency prepares to select vendors for a new commercial van to replace its current “Long Life Vehicles,” (LLV) which have been in service more than 25 years.
At stake is business valued at nearly $12 million last year but which could require affected retreaders that use mold-cure systems to invest tens of thousands of dollars in new molds. That would be the case if the USPS should specify that newly designed vehicles use tires larger than the 14- and 15-inch diameter tires used now, which some observers consider a likely possibility.
Greenville, S.C.-based Oliver Rubber Co. L.L.C. has been the exclusive supplier of retreads to the USPS since 2004, and the agency renewed the contract—worth more than $41 million—with the Michelin North America Inc. subsidiary last November. The length of the contract was three years, with two two-year extension options for a potential total of seven years, the agency said.