GTI CONTRACT EXTENSION 1. The United States Postal Service intends to non-competitively negotiate a five one year extensions with General Technology, Inc. (GTI) for the MCSWAP contract, increasing the maximum order limitation by $200 million. 2. The additional one year extensions will run from April 10, 1999 through April 9, 2004. 3. The contract has become a very successful partnership between GTI and the Postal Service. 4. The Postal Service has concluded that its interests are better served by furthering the business relationship that has been developed over the past seven years, rather than creating a new competition and source selection at this time. 5. In taking this action, the Postal Service is recognizing the high quality being provided under the existing contract (GTI has won the Postal Service's Quality Supplier Award and has been runner up). 6. GTI's excellent performance, combined with a contract that provides constant technology refreshment, regular price adjustment to stay current with the marketplace, and program management support services customized to the Postal Service requirements makes potential gains from recompetition unlikely. 7. The Postal Service has concluded that the cost and risks of recompetition, the administrative effort required to transition operating processes to a new source, and unique support capabilities are much more significant factors that outweigh any gains from changing sources. 8. The Postal Service has therefore negotiated for the longer renewal, and currently plans to recompete the contract at the end of that renewal period. 9. This announcement is for information purposes. 10. The Postal Service plans to extend the GTI contract on or about April 5, 1999. E-MAIL: awalkerh@email.usps.gov, awalkerh@email.usps.gov. Posted 03/31/99 (W-SN314752).

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