USPS argued both steps are necessary before litigation can be pursued, and Workhorse completed only the first one before filing its lawsuit. If still unresolved, the company can then lodge a second complaint with the supplier disagreement resolution official. A potential vendor has 10 days after an award to file a grievance with the contracting officer. Justice and USPS said federal statute gives the Postal Service autonomy in making procurement decisions and USPS regulations require a two-step process when challenging a procurement decision. “As a result, the Court must dismiss this case.” “Workhorse has indisputably failed to exhaust administrative remedies required by applicable Postal Service regulations,” the government wrote.

Court of Federal Claims to throw out the suit, saying Workhorse must first go through USPS' internal process to challenge procurement decisions before a court can weigh in. The Postal Service and the Justice Department subsequently asked the U.S. Workhorse Group, a much smaller company and also a finalist for the contract, last month sued USPS over the decision. In February, USPS awarded its fleet replacement contract to Oshkosh, tasking it with manufacturing at least 50,000 and up to 165,000 vehicles. Postal Service is asking a federal court to dismiss a lawsuit against it claiming the agency arbitrarily awarded a potentially multi-billion dollar contract to replace its vehicle fleet, arguing the plaintiff has not followed the proper procedure.

Usps contract workhorse