SAP to deliver Postal Service HR system

SAP America Inc. has won a $35 million contract to provide the U.S. Postal Service with a new human resources information system, the company announced this week.

Under the contract, SAP America of Newtown Square, Pa., will replace the agency's 25 year-old system with its MySAP Business Suite.

The contract covers $14 million in license and maintenance fees and $21 million in services from the company's professional group, said Monica Hand, a spokeswoman for the Postal Service.

As part of its selection of the MySAP Business Suite, the Postal Service also licensed SAP NetWeaver, an open integration and application platform.

The project will enable the agency to modernize and streamline its human resource capabilities and provide employees with better access to information through an integrated platform, said Robert Otto, the Postal Service's chief technology officer. In addition, the software will provide agency management with the tools and information it needs to manage and control costs, he said.

The Postal Service employees one-third of the civilian workforce of the federal government and is one of the world's largest employers, with more than 700,000 employees.

SAP America is a subsidiary of SAP AG of Walldorf, Germany. The company provides business software for the government and commercial sectors. The company has more than 30,000 employees and annual sales of $8.8 billion, according to Hoover's Online of Austin, Texas.