Xerox loses $157.7M workers' comp processing pact

Xerox Federal Solutions is fighting for a $157.7 million contract to process federal workers' compensation files after it lost the contract to another company.

Xerox has held the contract since it acquired Affiliated Computer Services in 2010. I couldn’t determine how long ACS had been the incumbent.

Client Network Services Inc. of Rockville, Md., won the contract in May, according to an FBO.gov notice, but Xerox didn’t file its protest until this week. 

The contract was let by the Labor Department to centralize three workers' comp programs: the Division of Federal Employees’ Compensation, the Division of Coal Mine Workers’ Compensation and the Division of Energy Employees Occupational Illness Compensation. Xerox has been processing medical bills including receiving and reviewing bills, handling inquiries from claimants and providers and adjudicating and pricing medical bills.

The information systems supporting these efforts are owned by Xerox and not the government so if it fails to retain the work via the protest, the data will need to be transferred to CNSI.

CNSI specializes in health IT solutions including claims payment and processing, systems development and infrastructure and case management, among other services. Its customers include the Agriculture Department, Census Bureau, Amtrak, HUD, the Labor Department and the National Nuclear Security Administration.

Xerox filed its protest June 15. A decision is due Sept. 23.