A company with ties to Lordstown Motors Corporation plans to challenge the United States Postal Service's decision regarding a multibillion-dollar contract, Reuters reports

Workhorse, a Cincinnati-based manufacturer of electric vehicles, hoped to land a 10-year contract with the U.S. Postal Service to manufacture a new generation of U.S.-built postal delivery vehicles.

Back in February, the postal service awarded the contract to Oshkosh Defense in Oshkosh, Wisconsin. Under the $6 billion contract, Oshkosh will assemble 50,000 to 165,000 of the vehicles over 10 years. The vehicles will be equipped with either fuel-efficient internal combustion engines or battery-electric powertrains and can be retrofitted to keep pace with advances in electric vehicle technologies.

On Wednesday, Reuters exclusively reported Workhorse will file a legal challenge to the postal service's decision when it comes to awarding the contract to Oshkosh Defense. Reuters cited a source familiar with the matter. The source told Reuters the challenge could be filed in the U.S. Court of Federal Claims as early as Wednesday. 

In 2019, Workhorse signed a three-year intellectual property licensing agreement with Lordstown Motors regarding the Workhorse W-15 electric pickup truck in exchange for an initial equity stake of 10% in Lordstown Motors Corporation.

The former CEO of Lordstown Motors hoped to convince Workhorse to build the postal service vehicles in its Lordstown plant if Workhorse got the contract.