NCR pushes IBM out the window at USPS

The U.S. Postal Service has signed a $24 million services contract with NCR, which will become the sole supplier of Microsoft Windows-based software for USPS’ retail computers. Under previous contracts, NCR and IBM had provided the customized retail software used in post offices nationwide.

Jim McMullen, president of NCR Government Systems, said the exclusive contract would lower costs and reduce complexity when software updates that reflect changes in the price of postage, for example, become necessary.

NCR’s POS One software, now used at 8,500 post offices, runs on Windows NT. By the end of 2006, NCR should have POS One installed at 15,000 post offices. Under the services agreement, the company will provide project management, software engineering services and more complex help-desk support, McMullen said.

USPS can extend the one-year contract for four additional years at $20 million each year, said Patricia Licata, a USPS spokeswoman.