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Northrop Grumman Sues US Postal Service Over Automated Snail-mail Sort Contract

Posted by Unknown on from the brought-to-you-by-fedex dept.

McGruber writes "The Federal Times is reporting that Northrup Grumman has filed suit against the US Postal Service, accusing the USPS of violating the terms of the 2007 fixed-price ($875 million) contract to produce 100 massive automatic sorting systems, each capable of handling millions of magazines, catalogs and other pieces of flat mail. The Postal Service embarked on the project just as mail volume was beginning to nosedive, cutting into anticipated efficiency gains. The sorting machines' performance has been uneven, according to a series of reports by the Postal Service's inspector general."

3 of 80 comments (clear)

  1. Cancel All Defense Projects with Grumman by george14215 · · Score: 5, Insightful

    Why not? Would any private sector business continue to do business with a partner that was suing it?

    1. Re:Cancel All Defense Projects with Grumman by Mindcontrolled · · Score: 4, Insightful

      Private sector businesses do that all the time. One of my firm's clients is a - naturally unnamed - car manufacturer. There's a happy merry-go-round of lawsuits between the manufacturer and its contractors. It usually ends in a slap on the shoulder - nice fight, didn't get what you wanted, did you, but let's just have a beer...

      --
      Ubi solitudinem faciunt, pacem appellant.
  2. Re:Makes me wonder by Anonymous Coward · · Score: 3, Insightful

    That interesting.

    Meanwhile, I'm wondering why, when any of these companies completely botches a defense contract, the taxpayers eat the cost of their fuck-ups for years on end. And really, which project DON'T they fuck up?

    But when they make a bogus machine that the USPS doesn't want, they sue!

    I love how some companies get to have their cake and eat it too, on my dime.