Postal Service Taps Lockheed for $215M Package Sorting Tech Supply IDIQ

Lockheed Martin (NYSE: LMT) has received a potential $215 million contract to provide automated package processing systems to the U.S. Postal Service.

The company said Tuesday it will supply as many as 10 Enhanced Package Processing Systems to USPS under the indefinite-delivery/indefinite-quantity contract to help the agency automatically separate mail pieces, reading materials, handwritten addresses, packages, magazines, catalogs, priority and bundled mail.

EPPS is designed with multiple modular components and works to process approximately 25,000 packages per hour to more than 400 destinations, Lockheed noted.

David Shivy, program manager of Lockheed’s distribution technologies unit, said the the company aims to help USPS address package delivery demands from consumers and businesses with the EPPS technology.

The company will deliver the first EPPS unit to the agency’s Processing and Distribution Center currently under construction in Portland, Oregon.

Lockheed expects the system to be fully tested, integrated and in service with USPS by October 2018.

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