USPS ends Network Outsourcing deal

The U.S. Postal Service has quietly terminated an 18-year, multibillion-dollar network services contract with Lockheed Martin that was to provide all of its data, voice, video and wireless services. Dubbed Universal Computing Connectivity (UCC), the contract was awarded to Lockheed Martin with much fanfare in October 2004. UCC had an estimated value of between $3 billion and $6 billion.

USPS terminated the UCC contract in July 2006.

Here’s all USPS will say about its change of heart:

“Due to changing business objectives/conditions, USPS and LM have agreed that the UCC contract cancellation is in their mutual best interests, and that it will not preclude the two parties from entering into other contracts in the future.”

Lockheed Martin has no comment on the UCC contract cancellation.

Lockheed Martin, a leading supplier of automated mail sorting equipment, was supposed to integrate networks that serve 38,000 postal locations nationwide. On its UCC team were leading network vendors, including BellSouth, Qwest, SBC Communications, Verizon, AT&T, HP and Hughes Network Systems.

At the time it awarded the UCC contract, the Postal Service was trying to migrate away from a network outsourcing contract held for many years by MCI. USPS leadership was troubled when MCI’s parent company WorldCom filed for bankruptcy in 2002.

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