SteelCloud gets $10M USPS recompete contract

SteelCloud Inc., a manufacturer of network and embedded computing solutions, has had its agreement with the U.S. Postal Service extended to provide specialized servers for the postal service's Flats Recognition Improvement program.

The postal service awarded SteelCloud a follow-on contract worth $8 million initially. USPS has an option to purchase additional servers, which would add up to $2 million to the total value. "Flats" are first-class letters and other envelope-size mail.

Delivery of the servers begins this month and will continue up to the end of SteelCloud's fiscal year on Oct. 31.

USPS initially selected SteelCloud for the FRIP program in December 2006. According to the company, the re-compete contract was the result of a protest lodged by a losing bidder early this fiscal year.

"A key factor in our success has been our engineering innovation," said Clifton Sink, president and chief executive officer of SteelCloud. "We have designed a patent-pending chassis that protects each server from dust and vibration typical in mail-automation environments."

SteelCloud of Herndon, Va., designs and manufactures specialized servers and appliances for federal integrators, software vendors and volume users. The company provides government and commercial clients with integration services and software focused on service desk, risk management and network management solutions.

At the end of its 2006 fiscal year, it had 69 employees and total revenues of about $24.2 million.