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The U.S. Justice Department said United Parcel Service Inc (UPS.N) has agreed to pay the United States $8.4 million to resolve allegations it overcharged federal agencies for package delivery services.

The settlement resolves allegations that from 2007 to 2014, UPS failed to follow its U.S. contract that required UPS to provide agencies with certain lower prices offered to another customer, resulting in the government paying more than it should have for package deliveries, the government said.

The Justice Department said there has been no determination of liability in the settlement that covers ground delivery service.

The head of transportation for United Parcel Service (UPS) can sum up Class Is’ service performance for much of this year in one word: underwhelming. Although they got off to a good start in 2019’s first three weeks, the large railroads didn’t meet stringent on-time performance and availability requirements in the first half, says UPS Vice President of Corporate Transportation Ken Buenker.

The world’s biggest parcel delivery company, UPS is one of the largest users of intermodal rail services in North America. For each Class I, the company assigns a minimal acceptable result (MAR) of 95 percent reliability for on-time deliveries or outbound departures.

Since UPS’ package and freight forwarding business hinges on the delivery times promised to customers, its operations need to be carried out like clockwork, including the timely transportation of parcels by rail, truck or air.

UPS is again boosting its investment in electric vehicle technology, unveiling a new line of range-extended hybrids to its fleet in the United Kingdom.

United Parcel Service Inc. (NYSE: UPS) said its new line of range-extended electric vehicles (REEVs) tackle the limitations of pure electric vehicles on the logistics industry by quadrupling the range of previous vehicles (from about 62 miles to 248 miles) and automatically switching to battery-only mode when reaching predetermined boundaries. The new REEVs also feature the same cargo capacity of traditional diesel vehicles of the same weight class.