ACS Lands $346 Million Outsourcing Contract

The Defense Finance and Accounting Service picked Affiliated Computer Services Inc. to provide a range of data processing and payroll services for military retirees and annuitants. The 10-year outsourcing project is worth up to $346 million.

The award was made as a result of a circular A-76 competition, and ACS, based in Dallas, will be transferring about 450 employees from federal payrolls to its work force.

Most of the federal employees affected, some 427 workers, are in Cleveland, with another 110 employees working in Denver.

ACS spokesman Lee Allen said the work force will be consolidated in Cleveland, resulting in some net gain in jobs there.

"The jobs that are currently there are ones we need to maintain ? we value their input and their experience," Allen said. "What we plan to do is give those current employees right of first refusal, make the jobs available to those who are already holding down the positions, and bring them in at or above the current salary levels."

The transition will take about four months from the time the contract is signed, probably some time in July, he said.

The tasks the company will be taking on include managing new and existing accounts; mailroom and imaging operations; customer service call center operations; pay operations and processing; electronic data exchange; maintaining and changing the application information system; generating and distributing reports; infrastructure support services; project management; and quality assurance.

Over half of ACS' approximately 21,000 employees came to the company through contract acquisitions and outsourcing, Allen said.

"It's been reported that it's a blow to the economy in Cleveland," but there will be no real impact on the city, he said. "It will be different, working for the private sector, working for [us], but ACS wants these employees to join our team."