After a month of mediation between the Postal Service and Unisys Corp., the company last week agreed to pay USPS $882,483 for an overbilling claim related to year 2000 date code repair work.

The service became aware last year from information provided by a Unisys whistle-blower that it had possibly overpaid Unisys, inspector general Karla W. Corcoran said.

The problem arose because unqualified Unisys employees performed some of the date rollover work, Corcoran said. The employees failed to meet the personnel requirements specified in a contract USPS awarded to Unisys, she said.

The company refuted the allegations. "We stand by the propriety of our billing," said Lisa Meyer, manager of public relations for Unisys' global public-sector group.

Meyer said the company settled to avoid litigation.

"I don't think this is going to hinder us from doing work with the Postal Service," she said. "Once it's settled, it's settled."

The work was for post implementation verification. "We were quality assurance folks," Meyer said.

The mediation and settlement agreement followed an investigation by special agents in the IG office into the whistle-blower's claims.

Computer User

-- Anonymous, June 11, 2002