ACS wins Ed. contract again

Affiliated Computer Services Inc. prevailed in a protest over its winning an extension for a $150-million-a-year contract for loan servicing services with the Department of Education.

SLM Corp. of Reston, Va., commonly known as Sallie Mae, protested the award when it was announced in November 2001. Sallie Mae is the leading provider of funding and servicing for education loans.

In January, the Department of Education announced it would conduct market research to determine whether it was appropriate to extend the contract with ACS of Dallas. On May 8, the agency announced it would keep ACS.

ACS has held the contract for the Direct Loan Servicing System since 1994, and will now continue to provide those services through Sept. 30, 2007. The system provides application, payment collection, accounting and reconciliation of government-sponsored loans to students for higher education tuition payments.