ACS Wins $354 Million Defense Outsourcing Contract

Affiliated Computer Services Inc. has won a 10-year outsourcing contract with an estimated value of $354 million to provide the Defense Finance and Accounting Service with payroll services and support, the company announced Sept. 11.

Under the contract, ACS of Dallas will provide payroll processing for new and existing accounts, customer service call center operations and mailroom and imaging operations.

As part of the deal, ACS will assume operations of DFAS facilities in Cleveland and Denver. The 535 employees who currently perform these tasks at the two facilities will become employees of ACS.

In addition, ACS will provide electronic data interchange, maintain and update the agency's application and information system and generate reports and assure quality.

The contract is one of the largest the company has with the federal government, ACS said. Following a transition period, ACS will assume full responsibility for pay services on January 28, 2002.

Originally announced on June 9, the award to ACS was tentative pending a public review period of not less than 20 days, as required under the A-76 program guidelines. The review period expired, and the contract was signed on Sept. 5.

DFAS provides pay-related services and support to 2.5 million Department of Defense retirees and annuitants with a monthly payroll of more than $2.6 billion.