WASHINGTON — Electrical automobile firm Workhorse Group voluntarily dismissed on Tuesday its authorized problem in opposition to a U.S. Postal Service transfer to award a multibillion-dollar contract to Oshkosh Protection for supply autos.

The ten-year contract introduced in February could possibly be value greater than $6 billion and permits for supply of between 50,000 and 165,000 autos. Workhorse had proposed constructing an all-electric automobile fleet for USPS, whereas Oshkosh plans a mixture of inner combustion-powered and battery-electric autos.

Workhorse’s authorized problem, filed in June, had been set to face arguments earlier than a decide on Wednesday in the U.S. Court docket of Federal Claims.

Workhorse and Oskhosh didn’t instantly reply to requests for remark late Tuesday. USPS declined fast remark.

Legal professionals for the Justice Division in July had filed a movement to dismiss Workhorse’s problem, citing its “admitted failure to exhaust necessary administrative cures,” in keeping with court docket paperwork. Oshkosh filed an analogous movement.

Workhorse later argued that USPS’ administrative cures violated the U.S. Structure, the Justice Division stated, nevertheless it argued that “Workhorse has forfeited its newfound…problem by failing to lift it earlier than the Postal Service.”

Postmaster Common Louis DeJoy has dedicated to no less than 10 p.c of the fleet being electrical autos, however has stated that with authorities help the USPS may commit to creating a majority of the fleet electrical inside 10 years.

Congress is contemplating offering USPS billions to hurry the adoption of EVs. Earlier this month, a U.S. Home of Representatives panel permitted $2.4 billion for the USPS to purchase new EV postal vans and construct charging infrastructure.