Defense Taps ACS for Outsourcing

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.

About 450 government employees will become ACS employees. Most of the federal employees affected, some 427 workers, are in Cleveland, with another 110 employees in Denver. The transition will take about four months from the time the contract is signed, probably some time in July, an ACS spokesman said.

The Dallas-based company will take over management of new and existing accounts; mailroom and imaging operations; customer service call center operations; electronic data exchange; maintaining and changing the application information system; and other functions.