USPS Last-Mile Bidding Process: Key Insights for Shippers in 2026

The U.S. Postal Service (USPS) is reshaping its last-mile delivery landscape with a new online bidding process that opens access to its extensive network of facilities. Launched in January 2026, this initiative allows shippers of all sizes to bid for direct entry into more than 18,000 Destination Delivery Units (DDUs) and over 170 local processing centers (LPCs) nationwide. The goal? Faster, more reliable delivery—often same-day or next-day—while helping USPS monetize its infrastructure under Postmaster General and CEO David Steiner's leadership.

This marks a shift from previous restrictions on direct DDU access, aiming to attract a broader range of customers and generate significant new revenue for the agency.

Why This Matters: A New Path to Faster Last-Mile Delivery

Under the program, winning bidders can inject parcels deeper into the USPS network, bypassing upstream bottlenecks for improved speed and reliability. This is particularly valuable for high-volume, lightweight residential shipments.

As Derreck Travers, SVP of e-commerce and business development at SmartKargo, noted on LinkedIn: “Direct DDU access gives shippers the ability to inject parcels deeper into the USPS network, bypass upstream chokepoints, and stabilize last-mile performance.” For many e-commerce and retail operations, this could simplify routing and reduce dependency on third-party consolidators.

The access ties into USPS's Parcel Select product via Negotiated Service Agreements (NSAs), with successful bids enabling customizable terms based on volume, pricing, and tender windows.

What Can Shippers Bid On?

Shippers have flexibility in structuring bids:

• Specific capacity at individual DDUs (near end consumers) or LPCs (upstream local hubs).

• Broader coverage for local markets, regions, or clusters of facilities.

• Custom combinations of volume commitments, per-parcel/pallet pricing, tender timing, and pickup windows.

Accepted volume can arrive in various formats—bags, pallets, gaylords—and qualifies for same-day or next-day USPS delivery from the entry point.

Usage depends on shipper capabilities: accurate ZIP-code sorting, compliant manifests via approved tech, reliable transportation to facilities, and concentrated volume in target areas.

How to Participate in the Bidding Process

1. Submit an inquiry form on the USPS website (usps.com/business/last-mile-delivery-bidding.htm) with your company details.

2. The USPS sales team contacts you to grant portal access.

3. Upload a spreadsheet detailing your bid: volumes, pricing structures, handoff timing, etc.

4. Customize your proposal—focus on high-revenue lanes while avoiding cost-prohibitive ones.

Bids can be adjusted until the portal closes on February 17, 2026. Winners receive notifications in Q2 2026, with service launching in Q3 2026 (likely July–August).

Steve Monteith, USPS Chief Customer and Marketing Officer, emphasized during a recent webinar: “You decide how to structure your solution by proposing your own combination of volume-based pricing and tender times at your preferred location.”

Potential Benefits and Considerations

Advantages:

• Faster delivery speeds for customers.

• More predictable last-mile performance.

• Potential cost savings through volume-driven pricing and reduced consolidator reliance.

• Opportunity for smaller/mid-sized shippers to compete.

Challenges:

• Competitive bidding may drive up prices in high-demand areas.

• Requires strong sortation, transportation, and tech capabilities.

• Higher costs could pass through to end consumers if not managed carefully.

• Success favors consistent volume and reliable performance.

Travers added: “The bidding environment will reward networks that can offer consistent volume, predictable tender windows, and strong service performance.”

Strategic Takeaways for Shippers

This USPS move aligns with broader supply chain trends toward speed, reliability, and network diversification—especially as e-commerce demands evolve. With the LMI showing rising transportation prices and tight capacity, direct access could provide a strategic edge.

At Gain Consulting LLC, we advise clients on evaluating opportunities like this:

• Assess your volume concentration and current last-mile costs.

• Model potential bids for high-priority ZIPs or regions.

• Prepare sortation/tech infrastructure to meet requirements.

• Weigh against alternatives (private carriers, consolidators, nearshoring impacts).

The deadline is approaching—act soon to explore participation.

For tailored guidance on the USPS bidding process, last-mile optimization, or integrating this into your 2026 logistics strategy, reach out to Gain Consulting LLC.

We're here to help turn postal network changes into competitive advantages.

Follow us on X @gainconsulting_ for more freight, e-commerce, and supply chain updates.

The official bidding platform is live at usps.com/business/last-mile-delivery-bidding.htm.