A firm fixed-price contract for 148 Automated Flat Sorting Machine Automatic Induction (AFSM-ai) systems was awarded for $125.2 million. The AFSM-ai system improves flat mail preparation and operation on the AFSM 100 platform with a state-of-the-art preparation, transport, and feeding system. This contract is for the second phase of this program and is the second purchase of AFSM-ai systems from this supplier. The AFSM-ai Phase I program has completed deployment of 210 systems. The Phase II implementation of 148 additional units will reduce costs by decreasing staffing requirements for flat mail operations.

Negotiations were completed and a contract awarded for $109.4 million for the purchase of additional delivery barcode sorter (DBCS) machines. This contract covers the purchase of 211 DBCS VI machines; 2,234 mid stacker modules; 797 stacker modules for existing Phase II–V machines; 4,500 tray carts for the DBCS VI; and 1,282 tray carts for the DBCS V.

A contract in the amount of $45.2 million was awarded to develop and build a prototype of the Remote Encoding System. This system will replace the current Image Processing Subsystem, which is the central component of the Remote Bar Coding System within mail processing operations.

E. SUPPLIER DIVERSITY

DiversityBusiness.com named the Postal Service as the “Top Organization for Multicultural Business Opportunities,” based on the volume, consistency, and quality of business opportunities granted to minority- and women-owned companies. This year Postal Service contract commitments with small businesses exceeded $3.3 billion; contracts with minority-owned businesses exceeded $347 million; and contracts with women-owned businesses exceeded $494 million.

The Postal Service’s Supplier Diversity function continues to strengthen strategic partnerships with suppliers through ongoing supplier councils that focus on new purchasing trends and supply management strategies. In 2006 Supplier Diversity participated in more than 50 community and organizational events including events organized by the National Minority Supplier Development Council, the U. S. Pan Asian American Chamber of Commerce, the National Congress of American Indians, and the Women’s Business Enterprise National Council.

4. Mail Security Equipment

A. VENTILATION AND FILTRATION EQUIPMENT

The Ventilation and Filtration System (VFS) program counters the threat of biohazardous material by reducing the risk of biohazards in the mailstream and by preventing cross contamination of mail. Two systems supplied by different manufacturers are essentially large vacuums that incorporate high efficiency particulate air (HEPA) filter technology to capture and contain aerosolized particles expelled from mail. Ventilation intakes pull airborne material into a filtering system that captures dust, potential contaminants, and particles of bacterial size and smaller. The VFS program fulfills the containment strategy of the Postal Service’s Emergency Preparedness Plan. Deployment of the VFS equipment was completed, except for three sites that require special site preparation. These three sites are expected to be completed in the first quarter of 2007.