Serco nabs Postal Service technology deal

Serco won a $51 million contract from the U.S. Postal Service to provide engineering support services as part of an effort to develop new mail-processing technologies.

Under the contract, Serco of Vienna, Va., will provide technical, project management and information technology services for future equipment. The company also will perform quality assurance consulting, testing and evaluations of the technologies.

The two-year base contract has four two-year options, bringing the potential value to $260 million over 10 years.

The contract represents the Postal Service's efforts to enhance and develop equipment that improves operations and customer service while reducing costs, said Walter O'Tormey, USPS' vice president of engineering.

"Being at the cutting edge in mail-processing technology has enabled the Postal Service to greatly improve productivity and customer service in the past, and it will continue to do so in the future," he said. The contract with Serco will help USPS do that, he added.

"In the 20 years we have worked with the Postal Service, we have developed a real appreciation for their unique needs and practical experience in their operations," said Ed Casey, Serco's chairman and chief executive officer.

Matthew Weigelt is a reporter with Federal Computer Week, an 1105 Government Information Group publication.