USPS Awards Northrop Grumman New Contract Despite Lawsuit

Despite pending multimillion lawsuits, the USPS has renewed Northrup Grumman’s contract to operate the agency’s Topeka repair facility. As the Federal Times reported last spring,

The U.S. Postal Service and one of its largest contractors, Northrop Grumman Corp., are locked in a bitter battle over a runaway modernization contract in which each claims the other owes it hundreds of millions of dollars.

Northrop Grumman claims in a new lawsuit that the Postal Service owes it about $180 million. The Postal Service claims the company owes it $341 million.

Here’s the press release announcing the contract renewal:

HERNDON, Va., Nov. 29, 2012 (GLOBE NEWSWIRE) — The U.S. Postal Service has awarded Northrop Grumman Corporation (NYSE:NOC) a three-year contract to operate its central repair facility in Topeka, Kan. Northrop Grumman has operated the facility continuously since 1978.

The program provides repair services for the Postal Service mail processing equipment, including electronic, mechanical and hydraulic equipment as well as reverse engineering and fabrication services. The contract is worth more than $30 million.

“Like our customer, we are committed to providing the nation with prompt and effective mail services,” said Ric Kowalchik, Postal Service central repair facility program manager, Northrop Grumman Technical Services. “We’ve been supporting the Postal Service for more than 30 years and will continue delivering reliable, innovative and affordable processes to support their mission.”

Northrop Grumman via