The United States Postal Service has awarded UPS a $280 Million four-year contract for  “air transportation and terminal handling services in support of a nationwide air transportation network.”

The day after USPS awarded the contract, UPS issued this press release on opening a new state of the art mail processing center:

UPS Mail Innovations Opens State-of-the-Art Processing Center Near Phoenix

Company Also Invests in Sorting Technology for New Jersey Center

UPS Mail Innovations, the business mail services unit of UPS , has opened a new processing center near Phoenix to improve service to companies in Arizona and New Mexico that rely on UPS to manage their outbound mail processing.

UPS Mail Innovations handles the pick-up, processing and sorting of its customers’ outbound mail pieces weighing less than one pound and applies postage before delivering the pieces to the U.S. Postal Service for final delivery. With the opening of the new facility in Tolleson, Ariz., UPS Mail Innovations now processes mail at 16 locations in the United States.

The Arizona facility is processing approximately 20,000 mail pieces each day for distribution to others parts of the country and also delivering about 28,000 already-processed mail pieces each day to nearby Postal Service facilities for final delivery. Customers include companies in the retail and pharmaceutical industries, among others.

“UPS Mail Innovations serves customers that have opted to outsource their mail operations, saving them time and money,” said David Larkin, regional manager for UPS Mail Innovations. “Opening this facility in Arizona enables us to offer customers in the region more efficient and effective service than ever before.”

The opening of the facility is the third major recent investment by UPS in UPS Mail Innovations. In October 2009, the company added a new parcel sorter to its facility near Logan Township, N.J., allowing for more complete and speedier processing of under-a-pound parcels. Later this month, the company will double the size of its facility in Rancho Cucamonga, Calif., and next year install a parcel sorter at that facility.

“We continue to invest smartly in UPS Mail Innovations because we recognize the critical role it plays in helping businesses operate and grow,” said John Walsh, vice president of business development, UPS Mail Innovations. “Business mail processing, when done right, is a vital part of effective logistics for any business.”

UPS Mail Innovations is a work-share partner with multiple postal authorities around the world. Helping companies more efficiently and effectively manage their outbound mail while pursuing maximum postage savings, UPS Mail Innovations is an important component of UPS’s expanding portfolio of package delivery, transportation and logistics services. For more information, visit upsmailinnovations.com.