Northrop Grumman Sues Over $874M Postal Service Contract

Law360, New York (May 7, 2012, 3:19 PM EDT) -- Northrop Grumman Corp. on Friday sued the federal government for allegedly breaching an $874 million U.S. Postal Service contract by improperly delaying and disrupting the company’s work to install machines that help sort mail.

The company says that since the Postal Service awarded the fixed-price contract for the Flats Sequencing System, a huge system of machines that sort flat mail such as envelopes, it has hampered the project by continually altering and updating its requests for how the project should proceed.

“Immediately following execution of the production contract in February 2007 and continuing through the end of program deployments in mid-2011,...

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