XO wins $45m deal to upgrade USPS IT network

US company XO Communications has been awarded a $45m contract to help upgrade IT systems at more than 1,400 US Postal Service facilities. The six-year deal was awarded as part of the Telecom Integrated Postal Network program, a organization-wide upgrade of the internal USPS computer network being carried out through a multi-vendor contract.

XO Communications, which has its head office in Herndon, Virginia, will provide design and engineering, onsite installation, router management and managed virtual private network (VPN) services.

It said the work would allow the USPS network increased bandwidth to handle more intense traffic as the Postal Service deploys next-generation software applications.

XO will be providing an MPLS IP-VPN system that means a “secure, intelligent and managed” network for connecting up the agency’s operations with voice, video and data communications.

“We are very pleased to have been selected to help the Postal Service achieve its network performance and optimization goals,” said Dan Wagner, president of XO Business Services at XO Communications. “This agreement is a great testament to the high-quality managed solutions XO Communications provides over its extensive North American network.”

According to the USPS, it has the world’s third-largest computing infrastructure and maintains the world’s largest Intranet system. Employees send nearly 16 million emails a day on one of the world’s largest email systems.

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